eli5: How does it work when a company is sued for millions of dollars? do they actually pay that out in cash/stock/etc..
In: 13
Step 1: appeal.
Step 2: try to reduce the judgement amount.
Step 3: determine if the amount is crushing or petty cash. If it’s the former, declare bankruptcy and try to hide as many assets as possible. If it’s the latter, pay and move on.
Remember that businesses are amoral. Sometimes fines and judgements are simply the cost of doing business. For example, if it costs 1000 dollars per ton to treat my sewage in port, but I only get fined a hundred bucks if I get caught dumping it at sea… I know what keeps my shareholders happy.
Or a more personal example: I once had a roommate who realized that she was only getting a ticket once or twice a month and the fine was $40 if paid early. Parking was $20 a week. She quickly just considered the fine a discount on parking.
Step 1: appeal.
Step 2: try to reduce the judgement amount.
Step 3: determine if the amount is crushing or petty cash. If it’s the former, declare bankruptcy and try to hide as many assets as possible. If it’s the latter, pay and move on.
Remember that businesses are amoral. Sometimes fines and judgements are simply the cost of doing business. For example, if it costs 1000 dollars per ton to treat my sewage in port, but I only get fined a hundred bucks if I get caught dumping it at sea… I know what keeps my shareholders happy.
Or a more personal example: I once had a roommate who realized that she was only getting a ticket once or twice a month and the fine was $40 if paid early. Parking was $20 a week. She quickly just considered the fine a discount on parking.
I worked at a small-ish company that sued a large-ish company for patent infringement. We eventually won in court and in appeals, and received cash equivalent to twenty times our normal annual gross revenue. Huzzah!
Except the cash influx destroyed our company (a complicated story). Sigh. Would have collapsed on its own soon, though, so no huge loss. The paying company survived for much longer, after.
I worked at a small-ish company that sued a large-ish company for patent infringement. We eventually won in court and in appeals, and received cash equivalent to twenty times our normal annual gross revenue. Huzzah!
Except the cash influx destroyed our company (a complicated story). Sigh. Would have collapsed on its own soon, though, so no huge loss. The paying company survived for much longer, after.
I worked at a small-ish company that sued a large-ish company for patent infringement. We eventually won in court and in appeals, and received cash equivalent to twenty times our normal annual gross revenue. Huzzah!
Except the cash influx destroyed our company (a complicated story). Sigh. Would have collapsed on its own soon, though, so no huge loss. The paying company survived for much longer, after.
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