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There is no legal prohibition to it, but who would want to buy a lawsuit. In such cases, arrangements can be made whereby some part of the proceeds of sale remain in escrow pending the outcome of the litigation. Money that would have gone to the seller of the company now goes to the winner of the lawsuit and any remaining money goes to the former owner. That works only if the amount of the damages is known. If it seeks unliquidated damages in an unspecific amount, it will be difficult to sell. The damages could exceed the value of the company.

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Q: Can you sell a company with a lawsuit against it.?
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