Am I liable for a harassment complaint that was still being investigated when I bought the business?

It depends on your deal structure, though there's an added practical wrinkle here compared to some other pre-closing liabilities. In a share purchase, generally yes — the corporation's responsibility to properly investigate and address a harassment complaint continues along with everything else, since it's the same continuing employer, and an incomplete investigation at closing is now yours to see through.

In an asset purchase, the underlying legal liability for conduct that occurred before closing generally stays with the seller as the employer at the time, but you're likely still dealing with the practical reality of an ongoing, unresolved workplace situation if you're continuing to employ the people involved — the complainant, and possibly the person complained about. An unresolved harassment matter doesn't neatly disappear just because the corporate liability might stay with the seller, especially since you have your own ongoing obligation to maintain a safe workplace going forward, regardless of who's responsible for what happened before you arrived.

Get full details of any pending complaint, its status, and how it's being handled before closing, and plan for how you'll manage the situation operationally, not just legally. A Treadstone business lawyer can help address both the liability and the practical handover.