How Small Businesses Could Face Class-Action Lawsuits
Feb 9 2022 0

Do Small Businesses Often Face Class-Action Lawsuits?

When a collection of people that have suffered similar harm decide to join forces and sue the entity that caused their harm, this is called a class action lawsuit. Damages that the group could be suing for may be financial losses or physical harm. Class action lawsuits can be incredibly costly for a business when they have to pay out a large settlement to aggrieved customers. 

You typically hear how various class action lawsuits are being used against very large and well-known businesses. However, that does not mean that small businesses are not vulnerable to facing the challenges and expenses that come with these legal suits too. In fact, businesses of all sizes can have a class-action lawsuit filed against them. 

Having an experienced attorney on your side can help you better manage your response and improve your chances of overcoming the suit with the best possible results. In Southern California, the Los Angeles business litigation attorneys at Leiva Law know how to manage these highly intricate and complicated legal suits.

The Risks for Class Action Lawsuits to Small Businesses

Before technology advanced by leaps and bounds connecting people all over the globe and giving them access to any product or service they could ever want, small businesses had less reach in terms of building a huge customer base than larger corporations. Because of this, they had a minimized risk for lawsuits.

How Small Businesses Could Face Class-Action Lawsuits

These days, with online selling and interactive social media platforms being utilized by all businesses as a part of their marketing strategy, those limitations of a business to get in front of a wide audience are largely a thing of the past. So, a small business could be able to develop a strong following of many more people through digital methods than they would have been able to in prior years. While this can help a business grow, it also increases exposure to legal challenges.

There could be many customers that sustained some amount of harm from a product or service a business offered. All that has to happen is that one person decides to move forward with filing a claim against a company. They can do so on behalf of everyone who suffered damages.

Class-action lawsuits can be filed by a company’s employees, their customers, or another business. Every component and action with respect to reacting to this type of suit must be done strategically and with calculated consideration. This is because there are several objectives that a business will want to address to protect its best interests.

For example, safeguarding your business’s reputation when you are being sued is critical to the continued operations and success of your company. So the position that you take along with what you say and do have to be aligned with keeping the integrity and trust in your company, your products and services, and your brand.

The Los Angeles business attorneys at Leiva Law understand the delicate dance and balance act that is involved with these types of legal battles.

Speak with a Los Angeles Business Litigation Attorney Today

When your business is being sued, you need experienced and intelligent legal counsel protecting your interests. The Southern California business litigation attorneys at Levia Law can meet with you to discuss your situation during a free consultation. Call today to schedule yours at (818) 519-4465. 

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