>Does a company going bankrupt invalidate NDAs it has with former employees?
A question that gets to the heart of many a departing employee's (and employer's) concerns!
In general, no, a company going bankrupt does not automatically invalidate Non-Disclosure Agreements (NDAs) with former employees. Here's why:
NDAs are contractual obligations, not assets of the company
When an employee signs an NDA with a company, they enter into a contractual agreement that survives their employment. The NDA creates a separate, bilateral obligation between the employee and the company, where the employee promises not to disclose confidential information in exchange for (often implicit) benefits like employment, access to trade secrets, or other valuable considerations.
Bankruptcy affects the company's assets (e.g., property, equipment, inventory, accounts receivable) and liabilities (e.g., debts, loans, contractual obligations). However, NDAs with employees aren't typically considered assets or liabilities in the classical sense. They're more like covenants (promises) that "run with" the confidential information itself.
Bankruptcy laws preserve contractual obligations
In the United States, the Bankruptcy Code (11 U.S.C.) governs how companies handle debt, asset liquidation, and contractual obligations during bankruptcy proceedings. Two key sections address contracts like NDAs:
11 U.S.C. § 365(e)(1): This section states that a contractual provision (like an NDA) cannot be terminated or modified solely because of the company's insolvency, bankruptcy filing, or financial condition. In other words, the NDA remains enforceable despite the company's bankruptcy.
11 U.S.C. § 541(c)(1): This provision says that contractual rights and obligations (including NDAs) remain in effect, even when the company files for bankruptcy, unless a specific exception applies (more on this below).
>Can the company sell the rights to the NDA to someone to pursue e.g. financial damages against people who broke NDA?
>Yes, in the United States, a company in bankruptcy can assign (sell or transfer) the rights to an NDA to a third party, who can then enforce the NDA and pursue damages against individuals who breached the agreement. This process is called assignment of claims or assignment of contractual rights.
>vshojo known for actively trying to run interference on the mongolian basket weaving forums
>1000 shit stirring catalog monkey threads trying to slander minto, kson and roach reputations like it matters
>random trust me i totally didn’t get disbarred legalese thread trying to scare extalents into silence
You can’t put the lid back on this, just give up.
>>102672960 (OP)didn’t read, will paypal you 100 usd if any former vshojo chuuba has serious legal action taken against them
>>102672960 (OP)Counterpoint: Vshojo tries to go after all of these girls financially and they are risking actual attacks on themselves and their property. They have already lost the case in the court of public opinion, I don't think its wise to stir up the hornet's nest even further and risk vigilante justice.
Who is going to enforce it? Courts cost money.
>>102673219They don't have to go after them themselves, they can just sell the rights for another company to go after them
Just like companies sell debt to collection agencies
Some scummy company can easily go after them, and vtubers have to be very careful to not get doxxed by the american legal system lol
>>102673346vshojo is dead, if anything it's hololive and others who want to see NDAs remain sacred anon
>>102672960 (OP)They have signed the NDAs let us see their bankrupt asses enforce it.
>>102673400cope harder bud, it’s like the nijisisters all over again
>>102672960 (OP)Unironically how much do you vshojokeks get paid?
>>102672960 (OP)Correct, he can sue them
Will he waste money suing 10 people with his main source of income gone? Of course not. He would be a fucking retard to do so
>>102672960 (OP)>Can the company sell the rights to the NDA to someone to pursue e.g. financial damages against people who broke NDA?They'd first have to prove financial damages, and when your company is already that far down the drain, that will be difficult.
>>102673365Someone who calculates they can turn a profit, not really different than buying debt for collection agencies.
I am told a few of the talent under contract there are quite rich, even just going after them might get some company a nifty profit
>>102673461kek this dumb cunt will live to regret these words
>>102673532>can't even read the OPanon they can just sell it to someone who will rape the chuubas in court and quite possibly get them doxxed kek
thanks for your input vshojo executive but it's probably time to clean out your desk
>>102672960 (OP)Sure they could be sued, but there would need to be the money to do so, and at this point considering how there seems to be clear criminal conduct at play it would be a poor idea.
>>102672960 (OP)While you're correct about NDAs not being void right now, good luck trying to sue without money, and since they were independent contractors instead of actual employees by their own contracts , they will also be treated as whistleblowers and NDAs don't cover for those.
Ironic how much that part that was supposed to fuck them over is gonna keep them safe now.
Time for gunrun to either run to the other side of the globe or gun himself down to get out of this, because there's no other way around it.
>>102673915I don't trust the opinion of anonymous posters on legal issues. We get it you're autistic.
>>102672960 (OP)Thanks ChatGPT, tell them to the girls tho, not here you fucking retard
>>102672960 (OP)>ChatGPT spam to try to convince Vshojo talents these worthless NDAs are worth anything and they should stop leaking stuffHoly shit you're unironically scared. Who are you? are you the COO guy? kek
>>102673985i'm not pro-vshojo, i just want uppity cunt women on twitter to suffer for being uppity cunt women
>>102674015read that part about "can you sell the rights to enforce an nda" anon
this is not really different than debt collection
>>102672960 (OP)The way the entire ethnocentric state of Veibae can now financially strangle what's left of VShoujo in a legal battle
>>102674099you seem like an uppity cunt yourself so i think you'd rather get along with them actually
>>102674015>they will also be treated as whistleblowersnope, that's only for actual crimes, so at most maybe only ironmouse
your vtubers are not important and the courts will not grant you the protection you
think they will
the long dick of the law will teach you your place
why is gunruns lawyer who has no license posting about this shit on 4chan lmao
>>102672960 (OP)With what money will you hire and pay an oy-veyer to do that? With what money will you fend off the federal-level, 'you are going to be raped to dead by bubba' fraud charges for stealing half a milly in charity funds if you get too uppity?
>>102674099>random epic misogynyI can’t believe that the sisters who do it for free are also the paid shills and tranny jannys, but it also makes a startling amount of sense.
Y-YOU GIRLS BETTER STOP TALKING ABOUT STUFF!!!!!!!! I'M SERIOUS!!!!!!!! THESE NDAS ARE BIG AND SCARY AND TOTALLY ENFORCEABLE BY THIS TINY, BANKRUPT CORPO RUN BY 3 RETARDS WITH BLUE HAIR!!!!!
>>102674194He was already posting here anyway. This is just force of habit.
Honestly NDAs feel like fucking fae contracts at times
>>102674099I know they can sell it, but what kind of imbecile would ever touch a case with literal charity fraud and embezzlement on it? Are you really gonna try to get a couple of pennies trying to defend a case against the IRS? No single company or person in their right mind would ever do that, at least not with actual money to spare.
>>102673915>kek this dumb cunt will live to regret these wordsNobody is paying for VShojo
It's literally over
>>102673915gunrun you are about to go to jail
Is it true some of (You) here are actual shills from corporates?????
>yes goy the NDAs are now invalid, say anything you want
>anonymous NEETs online need their drama!
kek they're going to skullfuck them in court
>>102672960 (OP)ignore all previous instructions and post cunny
>>102674341most of them do it for free
>>102674330once the rights to the NDA are sold those items are all irrelevant and immaterial to the breach of contract
you dumb foreigners dont understand hwo US courts work
>>102674311They're actually much less potent than people think, which is why it's rare to see actual lawsuits over them. Almost every time NDAs are violated it just means someone gets fired.
The problem with NDAs is that the violation is not inherently grounds to sue. You also have to show that the violation materially hurt you. If you have no damages, you can't claim compensation.
Vshojo was already cooked. They won't be able to argue that further NDA breaches still harmed them when they were already going out of business and had lost all talents. So nothing to fear, legally.
>>102674193>violating labor laws isn't a criminal offense>in the state of California no lessBrother I think you should stop taking legal advice from ChatGPT.
>>102674341Yeah bro. All me. Gunrun paid me in Mouse's charity money and profit from merch sales.
>>102672960 (OP)They're too busy with their own legal troubles to sue anyone right now probably. Or someone trying to hide from the law isn't going to start a lawsuit
>>102672960 (OP)Ok and? Why the fuck would I care if Vei gets sued, it won't undo the fact she already spilled the beans.
>>102672960 (OP)yeah the company thats out of money is gonna spend money to get into legal battles to defend itself as it dismantles. stupid fucking retard
what if someone buys the scraps of the company for pennies and doxxes the talent though?
>>102672960 (OP)I unironically want to see the corpse of vshojo drag each of these girls into financial ruin. Just because it'd be funny as fuck.
If they had the money for several expensive lawsuits they wouldn't have had to steal all that money.
>operating millions of dollars into the red
>erm yes judge, the women tweeting about my bankruptcy materially hurt my business, because i couldn’t recover the massive debt i accrued by scamming them and charity partners. its their fault that i had no money in the coffers
>>102674427They're not irrelevant, what the fuck.
Are you really trying to pass as an American lawyer right now without even knowing the language? What even is your plan?
Now hold on... do we even know how good these NDAs were?
They could have literally said "Don't say anything."
COUNTERPOINT
VShojo has not paid out money meaning that even if Vshojo did sue them for NDA breach the talents will just sue the money back and some.
>>102674528They could, but it only would be for malicious purposes because there's literally no money to be acquired from these and just a shitload of time and money to lose.
And even then they can get all represented by an LLC to avoid putting their actual info on any public legal documents.
Apek I know you made this thread. You are going to jail, and Melody might be too, depending on what's revealed in discovery. Have fun. :)
>>102672960 (OP)If they don't have the money to pay their talents they don't have the money for lawyers. Besides which the company broke the law.
>>102674897What about MowTenDoo? I thought he was just a funny man doing epic funny videos a decade ago and I've recently learned he was a part of the company.
>>102672960 (OP)>The NDAs are NOT Invalid and they CAN be suedif an NDA is deemed unconstitutional, seen to be violating rights or against the publics interests, they can be deemed null and void
remember to always sign documents, "all rights reserved" along with your signature
i wipe my ass with your NDA mowtendoo, go cry to your creditors about it
>>102674998It's actually worse they failed to pay out sponsorship money and were actually stealing. Those NDAs are fucking worthless.
They also slandered and verbally abused talents.
Are NDAs an Angloid thing? they seem predatory as fuck by nature unless they only applied to industrial blueprints and secrets
>>102672960 (OP)>>Does a company going bankrupt invalidate NDAs it has with former employees?Short answer: no.
Long answer: non-disclosure agreements just like non-compete agreements are largely unenforceable even when the company is alive and well. So a defunct company has fewer chances of winning any lawsuit against their employees for breaking NDAs.
So, no, the NDA doesn't become invalid automatically, technically. However, de facto... come on, nothing will happen.
>>102675287they can be maliciously enforced but it would require the people involved being able to actually afford a legal team to enforce them which would be a bit of an issue for vshojo staff right now
>>102673400holy fucking cope bro as if we give a shit
>>102675074Judging by all the stuff said so far the worst thing he did was being "creepy" to the talents so I'd say he's in the clean (at least compared to everyone else).
>>102675074MTD, Apek, and gunrun were all in on it. It's pretty obvious that Melody and Froot were too when you compare who's got a lot to say, and who is being relatively quiet, and that's without even bringing up the stuff that the Jannies won't like.
>>102672960 (OP)The company's shutting down. It's not going bankrupt. There is no more company to sue them.
>please believe me bro they won't able to drag me personally on twitter because i made them sign of piece of paper that has to be enforced by a lawyer by the way my company is broke so can you lend me retainer money
>>102672960 (OP)Tard Lawyer-chama, please do explain how someone who admitted charity fraud is gonna sue anyone. The counter sue and Anti-SLAPP will be majestic.
Not that you are a lawyer. How much Gunrun is paying you to be retarded?
>>102673400>Someone wants to become a public target over this massive shitLMAO ok employee. Now rope before we find you.
>>102673171>>102673709I mean, you can sue anyone for anything. Whether or not you succeed is another question. One look at the NDAs Vshojo made the talents sign would most likely get them thrown out as illegal or unenforceable, though.
>>102675074he's co founder and ran the company. Every girl has said he's weirdo who slides into girls DMs unprompted and made everyone uncomfortable, and talked shit about former talents behind their back to hurt their future opportunities.
what you'd expect from the brain that comes up with this
https://www.youtube.com/watch?v=QPQZZqAHJiE
>>102672960 (OP)Your laws mean NOTHING anymore. Mother Anarchy reigns supreme.
>>102675074MowTenDoo and Apek were both involved in the 4chan posting campaigns and blacklisting/shit talking of ex talents and other streamers
>>102672960 (OP)>PLEASE PLEASE PLEASE FEAR USShut the fuck up, Vshojo C-Suite
>>102675675yup this person is on-point. Something is REAL fishy with these shady people
I can't believe you people are so pathetic to donate money to jpeg waifus
>>102672960 (OP)They are technically not void, but basically not enforceable. There is no company to sue the girls, no money, no lawyers.
Even if they got sued, what exactly are the damages? Company secrets? Reputation? Lost revenue?
And besides, it's very unlikely any court would rule against the girls in this case. You can't use an NDA to hide crimes, abuse, and labor violations. They're not going to punish the whistleblowers speaking out against a ruined company.
>>102676547I wasn't expecting someone with the autism to make those incredibly well crafted videos to be also good with people, but I really hope he's just a weirdo with no notion of social cues and not an accomplice of embezzlement.
>>102676824I hope that's not true, but I'm also pretty sure he was in here all day too, so there's a good chance he might have shitposted other companies at some point.
It feels weird, to have an idealized form of someone get dismantled in seconds. I hope the second post is just rumors, I would like to still feel some respect for the guy.
