Business lawsuits can spell disaster for any company, regardless of the industry or the size of the business. Moreover, these lawsuits can be especially challenging for recently-formed businesses for a variety of reasons. If you recently launched a business and are facing a lawsuit, it is imperative to understand all of the options you have and take every measure to prevent litigation from destroying what you have worked so hard to set up. Unfortunately, the consequences of litigation have been so severe in some instances that business owners have had to shut their doors following legal action.
Lawsuits arise for countless reasons. Perhaps you are being taken to court by one of your competitors over claims that have been fabricated or exaggerated. Or, maybe a recently-hired staff member has decided to move ahead with a lawsuit over some type of employee rights violation. Regardless of the reason for litigation, the ramifications can be severe and may impact your business in multiple ways.
Business lawsuits can be devastating financially, of course. The penalties may deal a fatal blow in some instances and even when a business is able to survive the consequences of a lawsuit, it may necessitate a change of plans. Aside from financial considerations, your business' reputation may be on the line. As a new business, reputation is especially important, and it is essential for you to protect your firm's reputation as much as possible.
We realize how stressful litigation can be for those who recently started a business and we discuss relevant issues on our business law page.