{"ok":true,"canonical_url":"https://dealroom.so/glossary/pending-lawsuit","api_url":"https://dealroom.so/api/public/glossary/pending-lawsuit","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":"pending-lawsuit","term":"Pending lawsuit","group":"People and paperwork","definition":"A pending lawsuit means the business is currently involved in legal action, either as a plaintiff or defendant. This indicates an active legal dispute with potential financial implications.","what_it_means":"A pending lawsuit is a serious liability and requires thorough legal due diligence. Understand the likelihood of success, potential damages, and how it might transfer with the business. Lenders view these as significant risks to repayment capacity.","url":"https://dealroom.so/glossary/pending-lawsuit","official_sources":[],"related":[{"slug":"legal-dispute","term":"Legal dispute","url":"https://dealroom.so/glossary/legal-dispute"},{"slug":"legal-due-diligence","term":"Legal due diligence","url":"https://dealroom.so/glossary/legal-due-diligence"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"question":"Does a pending civil lawsuit against me personally affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-a-pending-civil-lawsuit-against-me-personally-affect-sba-7-a-loan-approval"},{"question":"What if the business I'm acquiring has a pending lawsuit that could result in a large financial payout?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-a-pending-lawsuit-that-could-result-in-a-large-fina"},{"question":"What if the acquired business has a pending major lawsuit; how will this affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-has-a-pending-major-lawsuit-how-will-this-affect-my-sba-7-a-"},{"question":"If the business I'm acquiring has a pending major lawsuit, how will this affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/if-the-business-i-m-acquiring-has-a-pending-major-lawsuit-how-will-this-affect-my-sba-7-a-"},{"question":"What if the business I'm buying has existing legal disputes or pending lawsuits?","url":"https://dealroom.so/sba-loans/basics/what-if-the-business-i-m-buying-has-existing-legal-disputes-or-pending-lawsuits"},{"question":"If the business I'm buying has existing legal disputes or pending lawsuits, how does that affect an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/if-the-business-i-m-buying-has-existing-legal-disputes-or-pending-lawsuits-how-does-that-a"}]},"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 — Pending lawsuit","url":"https://dealroom.so/glossary/pending-lawsuit","source_type":"DealRoom Data"}}