Red Bull does not give us wings….so they’ll give us 13 million dollars. Can your company afford 13 mil?
In another example of litigation run amok, I give you the court recent settlement by Red Bull. Recently, the company settled a class-action lawsuit claiming false advertising. Apparently the fact that Red Bull doesn’t ‘give you wings’, or enhance your physical or mental well being, aside from a caffeine rush and a case of the shakes, didn’t sit well with some of its customers.
Red Bull has set aside 13 million dollars in funds for those that purchased the product between 2002 and 2013 in order to settle the false advertising action. $10 for each person who bought the product until the funds are exhausted. But really, did anyone with half a brain think that the product was going to live up to the advertising? I wouldn’t expect to be able to climb a mountain after a can of Red Bull and neither would ant other reasonable person.
In my humble opinion, what we have here is another example of litigious America going after a quick money grab with another frivolous lawsuit. But here’s my point, this time it happened to Red Bull, don’t think it can’t happen to your company.
When I talk to companies about insurance, sometimes a company just doesn’t see a whole lot of risk in what they do. Sometimes I think they’re right…and I’m the insurance guy. But the thing is that in this day and age, someone out there may try to take you for a ride. Sometimes the best thing insurance can do for you is cover costs to defend against a frivolous claim.
Business owners will tell me quite often that they don’t see the risks and that insurance isn’t necessary. To that, I say that if someone sued you, who’s paying your legal bill even if you know it’s BS. You’re going to need to defend lawsuits, frivolous or otherwise. If you think you’re immune, it’s the same as defending yourself in court. You have a fool for a client.
As frivolous as a case may seem, sometimes things just don’t go your way in court, or in a case like this, a settlement makes more financial sense. Make sure you have your bases covered. If you think you aren’t, feel free to contact BIBSMA and be sure.
For more information on the topic or guidance, use the form below or reach out directly to Nathan Therrien at 978-400-7014 or at firstname.lastname@example.org