Startup Fighting a 12-Month-Long Lawsuit

In July 2011, KISSmetrics experienced a wave of bad press and then – got multiple lawsuits.
It cost them 12 months of pain in the ass and hundreds of thousands of dollars wasted.

Here are the core ideas you can learn from their experience:

1. You need to have “Errors and Omissions Insurance” otherwise you’ll pay legal fees from your own pocket that range from $700 to $1,250 an hour.

2. Make sure your insurance allows you to pick your own attorney (insurance companies provide you with the cheapest, least expensive one).

3. KISSmetrics was transparent with their team and as a result they lost no employees during this whole ordeal.

4. The more you respond to bad press, the more fuel you add to the fire. Just keep your mouth shut and after a while everybody will forget.

5. Only one person should be dealing with legal issues. The rest should focus on growth/revenue.

Source: www.quicksprout.com/2014/12/01/what-i-learned-from-fighting-a-12-month-lawsuit/