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Litigation and your company’s reputation

People often place a great deal of emphasis on some of the financial consequences associated with business lawsuits, such as financial penalties resulting from an unsuccessful outcome in court, as well as the stress associated with litigation. However, there are many other challenges that may arise for business owners when their company is taken to court, which may impact their operations in other ways. For example, a business’ solid reputation could be virtually shattered because of a lawsuit, whether the litigation was a result of alleged discrimination, sexual harassment, wage violations, trade secret theft or some other type of wrongdoing.

It is essential to protect your business’ reputation during a lawsuit and do everything you can to work toward a more favorable outcome in court. Some of these lawsuits are brought up by employees who falsely accuse an employer of wrongdoing or competitors who want to bring down another business. Even in instances where there may be some truth to the claims, the allegations could be exaggerated. Unfortunately, a business’ reputation may be shattered simply because the accusations surfaced in the first place, even if the court finds that there was no wrongdoing.

A damaged reputation can haunt businesses in a plethora of ways. Customers may flock to another business because they have an unfavorable outlook as a result of a controversial case and business partners who are critical to the success of a company may break their ties. As a result, you should do everything you can to protect your business if litigation has arisen.

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Kelsey, Kelsey & Hickey, PLLC - Estate Planning

Kelsey, Kelsey & Hickey, PLLC
2225 E. McKinney Street
Denton, TX 76209

Phone: 940-387-9551
Fax: 940-387-9553
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