When a business goes through the unpleasant mess of litigation, it will cost them a great deal in legal fees to their lawyers as well as what they have to pay the person who sues them – always supposing they win. However there are other costs that are largely hidden and often cannot be recovered, let alone even worked out because of their very nature.
The cost to the reputation of the company can bring it to its knees because such things can drag on for years. During this time the media will make a big fuss and the public tend to think, Where there’s smoke, there’s fire. In other words, they convict the company in their minds and this usually translates into not dealing with them anymore.