{"ok":true,"canonical_url":"https://dealroom.so/glossary/litigation","api_url":"https://dealroom.so/api/public/glossary/litigation","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"litigation","term":"Litigation","group":"People and paperwork","definition":"The process of taking legal action, typically a lawsuit. Any ongoing or past litigation against the business or seller is a serious risk that needs thorough investigation.","what_it_means":"During due diligence, always inquire about any current or past litigation involving the business or seller. Unresolved lawsuits can represent significant liabilities and impact the business's value. Your attorney should review all relevant legal documents thoroughly.","url":"https://dealroom.so/glossary/litigation","official_sources":[],"related":[{"slug":"judgment","term":"Judgment","url":"https://dealroom.so/glossary/judgment"},{"slug":"legal-opinion","term":"Legal opinion","url":"https://dealroom.so/glossary/legal-opinion"},{"slug":"indemnification-agreement","term":"Indemnification agreement","url":"https://dealroom.so/glossary/indemnification-agreement"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"}],"related_questions":[{"question":"What if the business I'm acquiring has existing litigation or legal disputes?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-existing-litigation-or-legal-disputes"},{"question":"How do past civil litigation or judgments impact my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/how-do-past-civil-litigation-or-judgments-impact-my-sba-7-a-loan-approval"},{"question":"What if the business I'm buying has existing legal disputes or pending litigation?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-existing-legal-disputes-or-pending-litigation"},{"question":"What if the business I want to buy has pending litigation or unresolved legal claims?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-want-to-buy-has-pending-litigation-or-unresolved-legal-claims"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Litigation","url":"https://dealroom.so/glossary/litigation","source_type":"DealRoom Data"}}