Massachusetts Court Declines to Dismiss Chapter 93A Claim Based on Allegations of Fraud, Bad Faith Conduct

Short summary

Massachusetts court ruled that fraud and breach of good faith in asset purchases can trigger Chapter 93A consumer protection liability, not just simple contract claims. In ConnectedView LLC v. Faith Teams LLC, the seller concealed financial data and destroyed source code post-acquisition. Founders should review pre-sale disclosures and monitor post-closing conduct to avoid similar liability.

• •Fraud and breach of implied covenant can constitute Chapter 93A violations in M&A
• •Seller concealed past-due accounts, inflated user numbers, and destroyed IP after $1.5M acquisition
• •Founders must ensure accurate disclosures and monitor former owners' post-acquisition conduct

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