Preemptive Litigation: A Potential Approach for a Precise Situation
Alexander Barnard and Ron Green explore the strategic use of preemptive legal filings in response to demand letters and threats of litigation.
December 27, 2024 at 09:40 AM
13 minute read
Consider this scenario: one day, your client receives a demand letter seeking a large “settlement” of a dispute from a former employee or business partner. The letter includes a draft complaint, or references one, along with a draft press release, and the message is clear: pay up or face a potentially embarrassing, not to mention damaging, public filing. And you know this is not a bluff—the filing is coming. Perhaps the allegation is meritless, or at the very least, highly exaggerated. It could be entirely false, yet for a public company, the reputational costs (even internally), are significant; defense and vindication are necessary. If your client is unable or unwilling to pay the demand, what do you do?
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