RE:Lawsuit in Texas for Breach of Contract We've already dug through this lawsuit.
1) Reliq never knew about the arrangement the CVO made. Had they known about covenants or conditions placed on the business the acquisition may never have happened, or would be at a substantially different price. Accordingly the lack of disclosure is extremely material and Reliq shouldn't be held liable, whereas CVO should be held liable for personal damages for failure to disclose and misrepresentation of facts.
2) The Carson guy (main lawyer suing them) - check out his past lawsuits, he's typically settled around $50k - $250k. This isn't some hotshow law firm, its a relatively smaller shop in (relative to Toronto) the middle of nowhere.
3) The maximum damage (if any) to Reliq should be restricted to revenue generated from their relationships, i.e. the business the firm brought in from their relationships.
Disclosure: taken a couple corporate law classes in my commerce degree. Not a lawyer.