Preparing for a Wave of Litigation

By Don Silver/executive VP, Boardroom Communications, Inc.

Almost every week we read about well-known companies facing class action litigation. It's almost like trial attorneys harvest the proverbial corporate field, row by row and
industry by industry. Today, asbestos, mold, age and sex discrimination, wage and hour and shareholder class action lawsuits seem to be most prevalent.

Organizations experiencing costly legal conflicts that fail to implement a solid communications strategy run the risk of experiencing high employee turnover, lost customers,
low employee morale and/or low productivity.

What can management do to prepare for what may be inevitable, and where should the communications planning originate: corporate counsel, CEO, risk management, HR, IR or in the
corporate communications department? Certainly, the impetus could originate with corporate communications.

When the company finds itself on the receiving end of a high-profile lawsuit, the first you may hear of it is from the media, which knocks you off balance from the beginning.
Consider this:

  • Immediately convene the crisis team even if it has to be via a conference call.

  • Once you hear about the lawsuit, try to buy time.

  • Assess the situation and develop appropriate message points for your audiences. A concise statement may be appropriate in the early stages of the litigation.

  • Choose your response vehicle, i.e., interview, statement, news release, e-mail Q&A.

  • Respond to the media on a timely basis and keep deadlines in mind.

  • Consider other communication methods such as the company Web site, internal e-mail, weekly meetings, etc.

  • Track the media.

  • Determine next-steps of the litigation process and create a calendar.

  • Conduct internal and external research to help develop the company's future message points.

  • Keep abreast of your legal team's strategy.

  • Hold regular checkpoint conferences with your crisis team.