Did Coach America buy out Renzenberger and if so was it before the federal law suit was filed?

Question

A federal law suit was filed against Renzenberger in February of this year, around the time that Renzenberger announced a merger. Who will be resposnsible fot the estimated 7,000 employees' overtime pay?

Answer 1

So far only a Letter of Intent has been filed but has not been finalized yet.

As to who is responsible to pay any judgment, it depends on the terms of the merger.  Usually, the company buying the assets will not take on any known liabilities (i.e. lawsuits) as part of the purchase.  There is also probably language in the merger agreement that shifts responsibility for these types of actions to the former owners.  I would think that the merger has been slowed down by the lawsuit since it has been nearly 6 months since the merger announcement.