Sponsor Litigation-Readiness Checklist

This one-page working list is designed for periodic sponsor review. It is not a promise that a dispute will be avoided and is not legal, insurance, tax or accounting advice.

1. Offering record: Confirm that the PPM, model, deck, subscription materials and oral presentation describe assumptions and risks consistently.
2. Projection support: Date the rent, occupancy, expense, financing, reserve and exit assumptions; preserve their sources and downside cases.
3. Communication ownership: Identify approved speakers, channels, factual owners, escalation points and the version actually sent.
4. Distress precision: Distinguish proposals from commitments, occupancy from collections, targets from actual results and negotiations from signed agreements.
5. Entity and authority map: Keep current organizational charts, governing agreements, signing authority and related-party disclosures.
6. Cash controls: Segregate entity accounts; document sponsor advances, distributions, capital calls, fees and related-party payments.
7. Decision record: Preserve contemporaneous approvals, alternatives considered, conflicts and the information available when a material decision was made.
8. Insurance record: Keep complete policies and endorsements; calendar policy periods and notice instructions; map insured people and entities.
9. Contract protections: Review indemnification, advancement, exculpation and dispute-resolution provisions on their actual terms.
10. Preservation readiness: Know where investor communications, models, accounting data, lender files, approvals and messaging records reside.
11. Correction process: Preserve the original, verify the facts and obtain appropriate review before issuing a clear correction.
12. Response plan: Designate who receives demands, who verifies deadlines, who contacts insurers and counsel, and who controls external communications.