Crisis Communications for Lawsuits
Protecting an organization’s legal position and public reputation
Crisis communications for lawsuits helps an organization respond when a complaint, court filing, investigation, verdict, settlement, or other legal development creates media attention or concern among important stakeholders.
The communications strategy should be closely coordinated with legal counsel. It should protect the legal position while also addressing the questions of employees, customers, investors, donors, business partners, reporters, and the public.
Legal accuracy is essential. Clear communication is also essential.
Why lawsuits create communications challenges
The legal process and the public conversation often move at different speeds.
A complaint may be public before the defendant has completed its investigation or filed a response. Reporters may describe allegations from the complaint without having access to the organization’s evidence or legal arguments.
Employees, customers, investors, donors, board members, and other stakeholders may see the allegations online and expect an immediate explanation.
The legal response may take weeks or months. The reputational impact can begin within hours.
Remember that allegations are not established facts
A civil complaint presents one party’s allegations. It is not a judicial finding that the allegations are true.
Communications about a lawsuit should accurately explain the status of the case. Statements should distinguish between allegations, disputed facts, court findings, rulings, verdicts, and settlements.
An organization should not mischaracterize the complaint. It should also not allow disputed allegations to be described as proven facts without considering whether a response is appropriate.
Careful language protects credibility.
Coordinate with legal counsel early
Communications counsel should work closely with the attorneys handling the matter.
Legal counsel can identify concerns involving:
- Attorney client privilege
- Confidentiality
- Court orders
- Sealed documents
- Discovery obligations
- Insurance requirements
- Employment and privacy laws
- Regulatory reporting
- Settlement restrictions
- Statements that could affect litigation strategy
Communications counsel can evaluate how statements may be understood by reporters and stakeholders, whether the language answers the central concern, and whether silence may create additional reputational risk.
The two disciplines should work together from the beginning.
Review what is already public
Before developing a communications strategy, determine what information is available to reporters and the public.
This may include:
- The complaint
- Court orders
- Public hearing transcripts
- Regulatory filings
- Government announcements
- Prior news coverage
- Social media posts
- Statements from the opposing party
- Company reports and website content
Public records
A reporter may have information the organization did not expect to become part of the story. The communications team should understand the public record before preparing a response.
Identify the audiences affected by the lawsuit
A lawsuit may concern more people than the parties named in the complaint.
Important audiences may include:
- Employees
- Customers
- Investors
- Lenders
- Board members
- Donors
- Patients
- Vendors
- Business partners
- Regulators
- Elected officials
- Industry groups
- Community members
Each audience may have different concerns.
Employees may worry about job security. Customers may question whether services will continue. Investors may focus on financial exposure. Business partners may want reassurance about ongoing obligations.
A court filing alone may not provide the context these audiences need.
Decide whether to issue a public statement
Not every lawsuit requires a press release or extensive public response.
The decision should consider:
- Whether reporters are asking questions
- Whether the opposing party is promoting the lawsuit
- Whether the allegations concern public safety, leadership, financial integrity, discrimination, fraud, or other sensitive issues
- Whether employees or customers are asking questions
- Whether inaccurate information is circulating
- Whether silence may be interpreted as indifference or inability to respond
- Whether a statement could create unnecessary attention
A response may be limited to a short media statement, an employee message, direct stakeholder outreach, or prepared talking points.
The response should be proportionate to the situation.
Prepare a lawsuit holding statement
When a complaint has just become public, the organization may not be ready to address every allegation.
A holding statement may acknowledge the lawsuit, explain that the organization is reviewing it, and state that it intends to respond through the appropriate legal process.
For example:
“We are aware of the complaint and are reviewing the allegations with our legal counsel. We take this matter seriously and intend to respond through the appropriate legal process. Because the case is pending, we will not comment on specific allegations at this time.”
This is a general example. The appropriate statement will depend on the case, the facts, the organization’s position, and the needs of its stakeholders.
A statement can also include relevant context, particularly when the public record may create an incomplete or misleading impression.
Prepare for common reporter questions
Reporters may ask:
- When did the organization learn about the allegations?
- Does the organization deny them?
- Has an internal investigation begun?
- Have employees been disciplined?
- Have regulators or law enforcement agencies become involved?
- How much financial exposure does the case create?
- Are similar claims pending?
- Will operations or services be affected?
- Why should customers, employees, or investors continue to trust the organization?
The organization should prepare accurate answers and determine which questions cannot responsibly be addressed.
Communicate with employees
Employees should not learn about a significant lawsuit from news coverage or social media when advance communication is reasonably possible.
An employee message may explain:
- What has been filed
- What the organization can confirm
- How the matter may affect operations
- How employees should handle outside questions
- Where employees can direct concerns
- Who is authorized to speak for the organization
- The message should not speculate about the outcome or disclose confidential legal information.
Employees should also be reminded that internal emails, text messages, and online comments may become public or discoverable.
Consider the digital record
Lawsuit coverage can remain visible online long after the case has been dismissed, resolved, or forgotten by the news media.
The organization should monitor search results and online coverage throughout the case. Important positive developments may warrant communication, including:
- Dismissal of claims
- Favorable rulings
- Court decisions
- Settlement announcements
- Vindication of an employee or executive
- Correction of inaccurate coverage
- Completion of an internal review
- Policy or operational changes
A communications strategy should consider the full life of the lawsuit rather than only the initial filing.
Responding to a verdict or settlement
A verdict, dismissal, settlement, or favorable ruling may create a new communications opportunity or risk.
Before making an announcement, confirm:
- What information is public
- Whether settlement terms permit disclosure
- Whether an appeal is expected
- Whether the client, insurer, and attorneys approve the language
- How the result should be described
- Which audiences should receive the information
A favorable outcome should not be exaggerated. An unfavorable outcome should not be ignored without evaluating the potential reputational impact.
Mistakes to avoid
Common mistakes in lawsuit communications include:
- Treating allegations as proven facts
- Calling the lawsuit frivolous without a strategic reason
- Attacking the opposing party personally
- Releasing confidential or privileged information
- Using language that conflicts with court filings
- Ignoring employees and customers
- Allowing several people to speak for the organization
- Assuming that “no comment” will end media interest
- Responding emotionally to an aggressive allegation
- Failing to communicate a later favorable development
Every public statement should be reviewed in the context of both the legal strategy and the reputational strategy.
Related topics
Speak with David PR Group
David PR Group helps companies, executives, attorneys, nonprofits, financial institutions, healthcare organizations, developers, and other organizations manage communications involving lawsuits, investigations, allegations, verdicts, settlements, and other legal developments.
We work closely with legal counsel to evaluate the public record, anticipate reporter questions, prepare internal and external messages, monitor coverage, and protect credibility without compromising the legal strategy.
Contact David PR Group for a confidential discussion about a lawsuit or another sensitive legal communications issue.