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What to do when your company faces a lawsuit

Through the years, your business has faced numerous challenges and has always been able to confront and overcome them. But now you have a new challenge that could prove more painful than others. Your company faces a lawsuit – a time-consuming and potentially costly endeavor.

You anticipated this for some months and have made some preparation. Already, you have conferred with trusted business colleagues, reviewed the issues behind the lawsuit and assembled the beginnings of your legal response. It is time to get a plan in place.

Talk it over and gather documents

When your company faces legal action, here are some critical initial steps to take:

  • Discuss the matter: Meet with business partners, executives, company insiders and trusted contacts within the business community to talk about the lawsuit and circumstances surrounding it. Dissect every detail that you know to learn more. Some of these people such as work colleagues may shed light on matters of which you were unaware. Maintain strict confidentiality for these conversations.
  • Contact a skilled business attorney: An attorney who has many business litigation cases under his or her belt will provide crucial insight, likely having represented clients in similar scenarios. An attorney will analyze the case in determining whether the matter represents a valid lawsuit or is a legal move meant to frighten you.
  • Assemble related documents: Providing evidence that contradicts the plaintiff’s claims is essential. Crucial documents may include emails, letters, invoices, contracts and electronic documents. And do not forget texts and voicemails. They will help you create a chronological summary related to the lawsuit and trigger memories and details you may have forgotten. Retain the records, and do not destroy them.

You must confront this with crucial knowledge and reliable support. The initial steps are critical.

Preparing for a resolution

A lawsuit will prove challenging and promises to take time away from your business. You want to minimize this as much as possible. Do your homework by preparing for a resolution. Your company depends on it.