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Can someone explain why a company being sued needs a lot of money to survive?



(1) Lawyers are expensive.

(2) Going to court without a lawyer is even more expensive.

(3) With an outstanding legal issue the company will find it hard to access credit.

(4) Many assets may be locked-down pending the outcome of the lawsuit, making it difficult to sell things, enter into new contracts or use said assets as collateral on loans.




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