Shook, Hardy & Bacon Washington D.C. Partners Mark Behrens and Victor Schwartz were quoted in a February 17, 2015 article titled “Huge U.S. Jury Awards in 2014 May Foretell Trouble for Carmakers” for Bloomberg Business.
Schwartz discusses how large punitive verdicts often have lingering effects on companies after lawsuits are settled. He says, “It can affect the reputation of the company. The stock can go down.”
Behrens talks about how the threat of punitive damages increases risk to companies, saying, “Punitive damages are used as leverage by the plaintiffs’ lawyers, both as a tool to force a settlement before trial and after a verdict to inflate the value of the settlement.”