Litigation Public Relations Archive

How Litigation Actually Helps Your Company Improve Its PR Capabilities

June 16th, 2010

Surprise – your widget-making mom-and-pop/mid-sized business/global corporate behemoth has been sued!  Apparently Timmy Goodkid Thompson tried to eat a decidedly non-edible product your business sells, and hurt himself quite amazingly in that effort.  Did we mention it’s your flagship widget, the one that drives 99% of your revenue?

The Thompson family – farmer father, teacher mother, rambunctious and adorable Timmy – have hired a media-friendly law firm, one that has perfected the art of PR stagecraft.  The firm has called a press conference to publicize the lawsuit.  All the 24/7 networks will be there, not to mention local reporters your neighbors know and trust.  Since the scrum will be streamed live, product safety bloggers are all over this one, riding a high-wave of backlash against corporate malfeasance.  Someone (the law firm?) has launched a fake Twitter account in your company’s name, a parody that sarcastically communicates abject, tone-deaf insensitivity with tweets like “next time blend the widget, it’ll digest more easily.”

Your company isn’t sweating, though, because you’re confident your product was not the cause of injury, and that your customers likely will understand this.  More importantly, long ago you hired a smart crisis management PR firm to draw up a crisis response playbook… right?  You did an inventory of interested media, have a holding statement in place, along with a grid that anticipates an escalating public relations meltdown… right?

Ok, enough about the PR nightmare, let’s shift to reality.  Litigation PR makes any company nervous.  No matter how small a lawsuit, the potential for media attention is limitless.  Yet in a way, that’s the beauty of litigation PR – in anticipating lawsuit scenarios, business leaders must identify every stakeholder, and that includes everyone in your company hierarchy.  Imagine the human resources involved in the widget lawsuit:

• Are the front office staff prepared to answer initial phone inquiries, do they have talking points?

• Have the interns been told to stay quiet and report inquiries to supervisors?

• Has the communications office reviewed and updated crisis PR procedures to ensure relevancy? (Note: Big Oil – walruses in the Gulf of Mexico – seriously?)

• Has building security been consulted regarding protestors who may show up at the front door?

• Has a point-of-contact been designated to oversee the entire crisis PR response?

• Has legal counsel examined your supply chain to identify each choke point of liability, and in turn relayed that information to your communications staff so they have statements and talking points ready to address each vulnerability?

• Are the IT staff ready to update the company website immediately with relevant messaging?  Do you have a dark site in waiting for this special occasion?

• Has everyone signed a NDA regarding trade secrets and the relevant aspects of litigation?

Such thorough preparation is essential in litigation PR.  As the company head, you can only achieve this level of care by engaging every tier of staff within your business operations.  That’s why an effective crisis playbook fundamentally requires looking inward, and in doing so your company encourages discipline amongst the ranks and knowledge of the situation.

Nothing looks worse than an erratic or empty media response to a lawsuit, so embrace the possibility of litigation and run the traps to get all employees on the same page.

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Posted in Brand Management, Corporate Communications, Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

Crisis Corner: If the End is Near for BP, What Does That Mean for Your Company?

June 9th, 2010

When the New York Times runs an article implying the end is near for BP, then you know the end is indeed possibly near.  Interesting that one event like an oil spill can do a global behemoth in, even one like BP with a miserable track record on safety (or lack thereof).

Normally, crisis public relations aim to see a client through to resolution of the problem in front of them.  A smart crisis management plan usually incorporates a grid of escalating threats and their consequences.  For example, a negative op-ed about the client might be considered a low-level threat, and the PR response would be proportionate, such as a rebuttal op-ed.  Or, a product recall may be a high-level threat, with the appropriate response being customer engagement and recall information presented on several online platforms.

But, if like BP your company faces a death knell, how should you plan your public relations response?  The scenario is real, and mega companies do implode – think Enron, Arthur Anderson, WorldCom, Lehman Brothers.  What usually follows is a string of scorched earth litigation and restructuring, much like political sausage making that no one likes to see.

If the end is near for your company, that doesn’t mean you can shirk on stakeholder communication.  Here are some reasons why:

• Everyone loves a comeback, so your crisis PR plan should include steps on making yourself accessible post-fallout.

• Reporters, historians, academia and others will continue to write and report about your company – so make sure that your side of the story gets a word in edge-wise.  Explain the domino effect from your own view, so people don’t put words in your mouth.

• If you are ever able to breathe life into the company again, you will need to generate a positive narrative from where you left off, and this requires keeping communications fluid.  Staying engaged with your stakeholders after the company dissolves will allow a better transition.

• As silly as it sounds, closure is just as important in the business world as it is in our personal lives.  Make sure the last word is yours and yours alone. This is the first and perhaps most important step to moving on in the wake.

As of now, BP is playing defense for its short-term response, and has given some hint as to paying claims in the future.  But if there’s no afterlife for BP, then it should start planning for the real worst case scenario, a total corporate meltdown.

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Posted in Brand Management, Corporate Communications, Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

How to Control the Rules of the Court of Public Opinion, Step 1

May 1st, 2010

In crisis management and crisis PR, *the* most precious commodity is time.  Events happen so rapidly that you don’t have to time to determine if you have the upper hand.  One day your business is coasting along, but the next day you’re causing a mega-environmental disaster, accused of bribing regulators, facing allegations of financial crimes, or trying to figure out if an opponent is more bark than bite.

Staring down the barrel of a lawsuit?  What’s your litigation PR strategy?  Better be more than hoping for limited liability.  Your business may be at the mercy of civil procedure rules and a trier of fact, but don’t forget that the rules of the court of public opinion are totally different.

To leverage those circumstances in your favor, your business must take steps before you face litigation.  Your public relations counsel should conduct a thorough risk assessment and identify all weak spots of potential negative publicity.  Still, effective risk assessment is more than scanning your business operations – the analysis must connect with messaging, otherwise you’re wasting your money on ineffective consultants.

That’s why your business must be armed with a holding statement that can be aimed at each potential publicity hit or reporter inquiry.  Nothing appears worse (or more guilty) than inaction or “no comment.”   Ask yourself, who are your stakeholders – customers, regulators, business partners, activists, employees, maybe others?  If they suspect being cheated somehow by your business, what will you say when the microphones are in your face?

Specific holding statements can address initial concerns and buy you time to regroup, take a deep breath and implement the extended PR strategy.  Don’t assume that your folksy charm, steel spine or other character trait will woo rabid press into submission.  Speaking on the fly only reinforces the image of being unprofessional, and worse, indifferent to the crisis.

Appreciate the importance of prior planning, finalize your holding statement and be patient – by doing so you’ve already made a strong opening statement in the court of public opinion.

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Posted in Crisis Clients, Crisis Management, Litigation Public Relations, Public Relations Strategy, Public Relations Tips, Reputation Management

The Tale of the Notorious J-O-B and iPhonegate

April 21st, 2010

The story surrounding the leak of what may possibly be the next iPhone has all the elements of new media intrigue – a company notorious about keeping secrets; sexy, cutting-edge gadgets; payments for story contributions; rumors of conspiracy; possible crippling lawsuits – and that’s just what we know now.

Overall, the question that anchors the debate is whether this is good or bad public relations for Apple.  Some say that “iPhonegate” dials up loads of free positive publicity for the company, while others argue that the leaked 4G phone makes Apple look sloppy on product control.  (While there is speculation about Apple purposely “planting” the phone to be lost and found, that doesn’t seem plausible – this is a company that doesn’t participate in amateur hour PR, and this situation seems no exception.  Besides, the company will never admit that they lost a prototype anyway.)

Here’s a better way to look at the ordeal – maybe Apple is pissed that they lost total control of the public relations narrative.  Gawker effectively unraveled and undermined Apple’s tight grip on the PR pipeline by releasing the prototype photos.  And, as we know about the control-prone company, nothing could possibly irritate Apple more than not scripting the media storyline on their own terms.  We can argue about the ethics of Gawker’s actions all day, but what can’t be denied is that Apple has no effective way to lead the story anymore.

So about that lawsuit… how about the odds on Apple pulling the trigger?  They’re probably pretty good.  Remember that Apple sued thinksecret.com into nonexistence after that site published leaked Apple trade secrets.  Add to that the fact that the Gawker platform has been a relentless critic of Steve Jobs for quite some time.  Add again to that the incredibly disrespectful manner in which Gizmodo responded to Apple’s request for the leaked phone to be returned, taunting the company that its gadget “was burning a hole in our pockets.”  Add again to that the potential lost value to Apple, at least via legal calculations, can be made out to billions (as in B).  It’s safe to say that Gawker can’t cover that bet.

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Posted in Corporate Communications, Litigation Public Relations, Media Aesthetic, News & Events, Reputation Management

Crisis Corner: How Oprah Can Combat Kitty Kelley’s Tell-All Book

April 14th, 2010

This past week, famous (infamous?) unauthorized celebrity biographer Kitty Kelley released her latest tell-all book, this one about talk show host Oprah Winfrey.  Kelley’s pen has struck many famous targets in the past, such as Frank Sinatra, the Bush family and even royal dynasties.

Oprah is more than just a celebrity, she is a bona-fide billion dollar brand – therefore the stakes are much higher in protecting and managing that image.  Crisis management 101 dictates that attacks on one’s brand and reputation must never go unanswered, and the two Oprahs – the person and the brand – are no exception.

So what crisis public relations steps should Oprah take as Kelley continues her book publicity tour, dishing seedy details and other awkward revelations?

• Stay above the fray.  Oprah’s handlers already maintain a tight perimeter around their boss, and no doubt that circle will hold strong during the book’s initial release.  Still, Oprah’s fans will seek reassurance about their idol, and that guidance is best administered from Oprah herself.  At the same time, Oprah shouldn’t indulge the book’s themes or specifics, so getting on the record with a diplomatic and confident statement is a smart move.  Something to the effect of “I don’t traffic in rumors and speculation … Ms. Kelley peddles in gossip, so I think that speaks for itself.”

• Have third-parties criticize aggressively.  Oprah’s brand has empowered a legion of other stars in her orbit.  These loyal and trusted advocates can criticize the book openly without dragging Oprah into it.  Imagine having Dr. Phil, Dr. Oz and Rachael Ray all drop responses here and there: “well, regardless of what’s in the gossip pages, this isn’t the Oprah that I know.”

• Lean on past success.  This isn’t the first time Oprah has faced a sharp attack, such as several years ago when Texas beef producers sued her for defamation, claiming that Oprah’s criticism of beef consumption was a direct attack on their business.  Instead of relying simply on scorched-earth litigation tactics, Oprah took complete command of the controversy by actually moving her television production to Texas for several days.  In doing so, she won over the locals, made the plaintiffs seem foolish and greedy, and looped the media theme back in her favor as a talk show host who cares about her fans.  Oh, and by the way, she won the lawsuit.

Advantage: Oprah.

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Posted in Crisis Clients, Entertainment & Sports, Litigation Public Relations, News & Events, Public Relations Strategy, Reputation Management

Litigation PR: Lindsay Lawsuit Is the Best Press Possible for E*TRADE

March 9th, 2010

“Never interrupt your enemy when [she] is making a mistake.” – Napoleon Bonaparte

“Bizarre Media Aesthetic” seems a more appropriate category than “Litigation Public Relations” for this blog article: today delusional personality celebrity Lindsay Lohan sued E*TRADE, the online financial transaction powerhouse, for $100 million in damages.  Here’s the miserable play-by-play:

• E*TRADE’s current ad campaign showcases its mascot, a wise-cracking baby who brags about the company in simulated video chats.  In the most recent ad the E*TRADE baby chats with a girl his age, who accuses him of flirting with another baby girl named “Lindsay” who has a compulsive milk-drinking habit.  As the E*TRADE baby attempts to deny this, baby Lindsay’s face appears and interrupts the chat.  Hilarity ensues.

• Lohan’s lawsuit claims that E*TRADE purposely included her “name, characterization and personality” in the ad, that she has not “given her consent” for such usage, thus violating her “right of privacy … causing injury” and entitling her to $100 million.  Hilarity ensues.

• Um, wow…

Normally when a company is involved in a high-stakes lawsuit, they seek litigation public relations support.  A common step such companies often forget (or ignore) is placing a prominent statement on their website to stop the press and others from drawing any conclusions.  As of today, E*TRADE hasn’t taken that step.  But, maybe this is the best move by E*TRADE.

First, we don’t even need to get into the merits of the lawsuit.  The Blog Aesthetic will go out on a limb and predict outright dismissal, not to mention the possibility of ethics sanctions against Lohan’s lawyers for filing frivolous litigation.  The more important thing is that celebrity media is probably the loudest, highest-profile, social-media saturated platform that exists.  As Lohan’s antics frequently vault her to the bottom top of this heap, the lawsuit will shove E*TRADE into glaring headlines for at least the next few days.

However, given the absurdity of the lawsuit, E*TRADE should simply heed Napoleon’s advice as Lohan’s own statements will likely destroy any shred of credibility behind her allegations.  This will direct any and all sympathy toward E*TRADE as the sensible party, and the company then can relax and bask in the glow of millions of dollars of free publicity, courtesy of an errant actress and ethically-compromised attorneys.

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Posted in Brand Management, Entertainment & Sports, Litigation Public Relations, Media Aesthetic, News & Events, Public Relations Strategy