Bet the company litigation is any kind of lawsuit or potential lawsuit that has the potential for ending a business if the action is resolved against the enterprise. In addition to lawsuits, regulatory disputes can also be classified as bet the company matters as well. Bet the company lawsuits are becoming more commonplace in this day and age. This type of litigation is something businesses of different types and sizes need to become better familiar with.
Increase in Bet the Company Litigation in Recent Years
Esquire magazine took a deep investigatory dive into the increasing prevalence of bet the company lawsuits in the United States. The investigative reporting revealed some compelling and even startling data:
- The rate of routine litigation in the business sector has remained relatively flat in recent years. The rate of companies involved in routine litigation in a particular year is somewhere between 90 to 96%.
- The percentage of businesses involved in what is classified as complex litigation in a given year has hovered between 78 to 79%.
- The rate of businesses finding themselves involved in bet the company litigation rose sharply during the three-year time period that was the focus of the investigative report. The rate of businesses involved in bet the company litigation went from 12% in year one to 37% in year two to almost 51% in year three. Moreover, the upward curve continues.
Most Frequently Occurring Types of Bet the Company Litigation
Across the United States at this juncture in the 21st century, there are a number of bet the company lawsuits and conflicts that arise with greater frequency. The five most commonplace types of bet the company lawsuits occurring in the country at this time are –
Litigation arising from industrial accidents has a definite propensity to put the future of a company at risk. Every year, some type of catastrophic industrial accident occurs that garners headlines and jeopardizes the prospects that a company will be able to carry on in the same manner that existed before such an incident.
Product Liability Cases
Similarly, product liability cases can result in bet the company litigation. A defective product, rather than occurring in the design or manufacturing process, can prove catastrophic for consumers and a disaster for a business enterprise’s future.
Intellectual Property Matters
Another line of litigation that can result in bet the company lawsuits involve intellectual property matters. An intellectual property dispute can end up barring a company from producing a product or even continuing the very operations of that enterprise.
Trade Secret Litigation
On a related note, trade secret litigation can have a similar wide-ranging impact on the ability of a business to continue its operations. An allegation that a business somehow misappropriated trade secrets can be devastating on all fronts.
Minority Shareholder Disputes
Finally, matters involving minority shareholder disputes in a corporation can lead to bet the company litigation. Minority shareholders are vested with certain rights. The assertion of these rights can include demands that result in restructuring and even liquidation of a corporate enterprise.
Six Fundamental Strategies to Survive Bet the Company Lawsuits
Successfully navigating through a bet the company lawsuit demands the implementation of a cohesive plan. There are six fundamental strategies to survive a bet the company lawsuit:
- Retain suitable legal counsel for bet the company litigation
- Designate a specific party to be in charge of litigation or regulatory issue
- Define specific roles of all bet the company response team members
- Conduct a comprehensive cost-benefit analysis of looming litigation
- Establish clear bet the company litigation goals and objectives
- Do not overlook public relations
The first and most crucial step that needs to be taken when a bet the company lawsuit is heading down the pike is to retain suitable, experienced, tenacious legal counsel. A business may have in-house attorneys. A company may have a law firm it typically turns to for more commonplace litigation. Nonetheless, taking a bet the company lawsuit on head-on and effectively demands legal counsel with specific experience in this unique and potentially enterprise-ending litigation. The attorneys at McGehee ☆ Chang, Landgraf, Feiler specialize in bet the company cases and have successfully litigated countless cases.
On a related note, designating a specific party to be in charge of a bet the company lawsuit or regulatory issue is mandatory. Typically, this is a particular lawyer or the law firm retained for the endeavor. Effectively maneuvering through a bet the company lawsuit demands that one party call the proverbial shots. Having diffuse leadership in a bet the company lawsuit can be disastrous.
On yet another related point, in building the company response team, each member of the component must have a specifically defined role. Commonplace team member roles include everything from attorneys to public information, affairs, and media relations to internal communication designees.
Inherent in any bet the company lawsuit is the very real prospect that the enterprise will cease to exist in its current form if the litigation does not turn out favorably for the business. Therefore, undertaking a very frank, highly comprehensive cost-benefit analysis must occur before embarking on this type of legal endeavor.
Related to the process of undertaking a complete cost-benefit analysis is the need to establish clear, concise bet the company litigation goals and objectives. Our attorneys will help in establishing goals and objectives that need to be undertaken at the outset of the process, at a juncture in time when the idea of this type of legal controversy initially is broached. Establishing clear and concise bet the company litigation goals and objectives guides all other aspects of the endeavor, including the selecting of appropriate, committed legal counsel.
Finally, the importance of meaningful public relations cannot be underestimated when devising a scheme to take on a bet the company lawsuit or regulatory matter. If a company lacks an internal public relations operation, retaining outside assistance is vital. Even if a business has an internal public relations shop, that professional group likely doesn’t have the background necessary to effectively handle a bet the company matter. Ideally, public relations professionals involved in this type of undertaking not only have a background in dealing with situations involving bet the company legal and regulatory matters but also experience in crisis communications.
If your business is facing a bet the company lawsuit, contact the attorneys at McGehee ☆ Chang, Landgraf, Feiler promptly to discuss the next steps.