Market Intelligence Industry Report
Shield, and Dow Corning Corp., maker of silicon breast implants, that both filed for Chapter 11 bankruptcy while in the midst of products liability lawsuits.
Bankruptcy is only one worry. Spahn advises in-house counsel to understand the other issues that can affect a company under fire from products liability cases, which include punitive and compensatory damages, product recalls, regulatory actions, product redesigns, devaluation of stock, negative publicity and a brain drain as employees flee an uncertain situation.
“Every company needs a products liability risk management plan,” he says.
Products liability cases represent one more argument for why companies should partner with law firms on a regular basis, says White. Law firm attorneys often do a good job of keeping their eye on the marketplace and litigation trends and can help companies avoid products liability lawsuits rather than have to fight them, he suggests.
Like a canary in the coal mine, companies should also watch their competitors, suggests White. “It’s important to watch what is happening to other members of their industry, not just cases filed against their company,” he says.
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