An Inside Look Into What To Do When Your Business Faces A Lawsuit

Businesses face lawsuits more often than you think, with some industries being at a higher risk of lawsuits than others. No business owner wants to wake up to legal action against their organization, but what do you do when a lawsuit comes your way? 

Step 1: Remain Calm

Don’t panic if someone sues your company – it doesn’t automatically mean you’re going to lose. Remain calm and read through the legal documents, paying close attention to any deadlines. Failure to meet those deadlines can mean you default, and the accusing party wins. Read through everything before going ahead with the next steps.

Step 2: Issue A Legal Hold

A “legal hold” is when you command your employees to preserve evidence related to the case. They’re not allowed to delete anything, meaning you have access to data and files that could support you in this legal dispute. The best way to do this is through legal hold software, which effectively seizes your data and locks it down so nobody can delete it. Not only does this help you gather your own evidence, but it also shows you’re complying with the case and can provide any evidence requested by the other legal team or the court. 

Step 3: Find A Legal Partner

At this point, you desperately need help filing your defense, so you should locate an experienced legal partner for your business. They’ll assist you from here in building your case and getting in the ideal position to defend yourself – or even go on the offensive. 

A good lawyer can turn the tide and mean you walk away cleared of any wrongdoing. Or, in some cases, they’ll help you pay out a fraction of the compensation the other party is looking for. 

Step 4: Don’t Make Things Public

Throughout the whole process, make sure you don’t make any public statements or reference the lawsuit through social media channels, etc. You need to ensure your employees don’t do the same because public statements can lead to reputational damage that lasts beyond the lawsuit’s conclusion. 

Step 5: Follow The Legal Process

Finally, you should follow all the necessary legal procedures to reach the end of the case. It can be a long and gruelling process that slows down your small business and makes life difficult for everyone. Regardless, you must listen to your legal team and comply with everything that happens. Whether this means submitting evidence, attending court hearings, or anything else that’s required of you during the legal process. 

Do not go at it alone or stray from the correct legal framework as you run the risk of making costly mistakes. Leave it to the professionals and they’ll help you reach the most desirable outcome, given the situation.

So, in short, any business can face a lawsuit at any point in its lifespan. They are more common than you think – but not all lawsuits are the same. Some may have no legs after a slight investigation, clearing you of any wrongdoing and potentially allowing a countersuit against the accusing party. Others may not go your way, but following the right steps can help you minimize your losses.