people being sued

Lawsuits: How They Affect Your Company

The business and legal industries have an unbreakable bond. These two industries work hand in hand for the benefit of each side. In the business industry, receiving lawsuits from their consumers could be the end of their company. Large businesses, companies, and banks are all clients of commercial law firms.

Having legal support is necessary for any business since businesses are more likely sued. Law firms can help the company by giving them legal advice on what to do when a challenging situation occurs.

Why Bigger Companies are Consistently Sued

Companies gain their success from the people. They gain the people’s trust by giving them the product and service that they came for. Most people have this idea of being materialistic, where they consume products that are popular and in-demand. The demand of the people is getting higher and higher, and some companies are struggling to meet these demands.

Consumers also have bigger expectations for large companies, putting pressure on them to enhance their products. Tech-companies usually receive more significant backlash than other companies because of the number of consumers they have.

Companies like Apple, Facebook, and Microsoft are examples of companies that receive backlash from their consumers. These days, tech consumers are rising in numbers, resulting in companies enhancing their products to meet the consumers’ ceaseless demands.


Failure to Meet People’s Demands

The customers’ demand is like the core of the company. A business is running because the people still need the products it produces. Every year, a company runs a survey on how efficient their products are and what are the possible changes they could make. This customer survey is to meet people’s demands.

People’s demands change from time-to-time, sometimes it changes so quickly. Because of the fast-changing needs of the people, companies are struggling to meet these demands, resulting in poorly-made products.

This is where the backlash from the people arrive. They will start to criticize a company that didn’t meet their expectations. A few examples of these companies who received lawsuits and backlash from their consumers are:

1. Toyota’s Biggest Recall

In 2020, Toyota conducted a recall in certain Toyota and Lexus vehicles and had recalled over 3.34 million cars. These vehicles have issues such as fuel-efficiency, exploding air-bags, and cracks in the fuel emission control unit.

The issue about the fuel emission control unit was a serious case due to the cracks developing in the unit. Fuel could leak from these cracks, which can endanger the car and the passenger. The complaint regarding the exploding airbag also poses more significant risks to consumers, for these exploding airbags have caused injuries resulting in car accidents.

2. Facebook Security Breach

Facebook is one of the frequently used apps in the world. It has over 2.45 billion users across the world who use the app for a few hours a day. People spend their time watching videos and sharing photos on Facebook almost every day.

Facebook is also a place where people carelessly post their full names and photos. This action poses a danger to the user because scammers and internet predators can illegally use their names and pictures. But people are posting their names and photos openly to the world because they trust in the app’s security.

But when the most popular app experiences a security breach, many lawsuits were filed against Facebook. This concerns the security breach issue in 2019, when roughly 50 million app users risk having their personal information leaked.

The question that comes after receiving all the backlash and lawsuits was how the companies handled the situation. It wasn’t an easy task to deal with millions of cases at once and assure your customers that you’ve got everything under control.

But with the help of their respective lawyers and from a partnership with competitive law firms, these companies were able to handle the situation well. This is how important lawyers are to companies.

Effects of Lawsuits

Handling lawsuits doesn’t end when the company releases an official statement. A company that receives an extensive amount of case have to carry the burden until the end. Lawsuits leave a massive scar in the business industry. It can ruin a companies reputation and decline a company’s value.

Lawsuits also affect the future of the company and decrease the sales of the product that was the reason for the case. It is not easy to get rid of the news regarding a product with defects. That is why companies tend to work harder to enhance their products to avoid further lawsuits.

Companies, especially bigger ones, avoid customer dissatisfaction at all costs. Their main goal is to strive and satisfy their customers at the same time. Avoiding any issues may be impossible, but most companies do their best to create fewer problems and ensure customer satisfaction.

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