Defamation and Business Litigation: When to Take a Stand

Defamation and Business Litigation: Strategic Legal Guidance for Protecting Your Reputation

In today’s digital world, reputations are built and destroyed online. A single review, article, or viral post can feel like an existential threat to your business. But when emotions run high, it’s easy to lose sight of the bigger picture. Not every mean comment, harsh critique, or even misleading statement qualifies as defamation. And not every perceived slight warrants a lawsuit.

The truth is simple yet often overlooked: you don’t always have a case, no matter how angry you are. Recent defamation cases highlight the distinction between valid claims and baseless complaints—and the consequences of rushing to court with bad advice.

Facts Aren’t Defamation: A Federal Court’s Wake-Up Call

Consider the recently filed case of Soloway v. G/O Media Inc., where a lawyer filed a defamation lawsuit on behalf of a client, arguing that a Law.com article caused reputational harm that led to him not being able to secure a new general counsel position. The problem? The statement was true.

Law.com accurately reported that Soloway’s company – with him as its general counsel – had been sanctioned and cited for contempt for failing to comply with several court ordered subpoenas for discovery. While also noting that he was subsequently fired.

The judge’s response was sharp and scathing, dismissing the case as a waste of the court’s time and a fundamental misunderstanding of defamation law.

This case underscores a foundational principle: if it’s true, it’s not defamatory. Truth may hurt, but it isn’t actionable. Filing a complaint based on facts, no matter how damaging, does nothing but waste resources and risk reputational blowback.

The Case of the Young Chiefs Fan: When Assumptions Go Wrong

A more nuanced example comes from the ongoing defamation lawsuit against Deadspin. The sports outlet accused a young Kansas City Chiefs fan of racism, publishing a photo of him in face paint and a headdress. The article went viral, sparking widespread outrage. But the story unraveled when it was revealed that the boy is Native American, from the Chumash tribe, and that his face paint represented the Chiefs’ team colors, not a cultural statement.

The boy’s family alleges that Deadspin deliberately omitted this context to provoke controversy and drive clicks, crossing the line from careless reporting to actual malice—the high bar required to prove defamation against a public figure. Whether the lawsuit succeeds remains to be seen, but the message is clear: assumptions are dangerous, and failing to do your homework can lead to legal and reputational disasters.

A court just last week refused Deadspin’s dismissal motion; it’s not looking good for them. Plus – the optics!

Business Defamation is Not As Clear Cut as You’d Like it to Be

For businesses navigating online criticism, understanding the line between defamation and free speech is critical. Not every negative comment or bad review qualifies as actionable. Defamation occurs when someone makes a false statement of fact that damages your reputation. Here’s the distinction:

The difference between the two is crucial but often misunderstood, which is where bad lawyers—and bad advice—can make things worse.

The Danger of Bad Lawyers (and Bad Advice)

A frivolous defamation lawsuit doesn’t just waste time and money; it can backfire spectacularly. Filing a complaint over an opinion or a true statement risks counterclaims, public embarrassment, and even sanctions from the court. The federal case above is a prime example: pursuing a baseless claim not only failed but also harmed the client’s credibility. Almost as a punchline, in filing the lawsuit, Soloway set himself up to be a headliner in Law.com again as they almost gleefully covered the judge’s decision.

Similarly, Deadspin’s failure to investigate before publishing highlights how recklessness can escalate a situation unnecessarily.

Businesses need legal counsel who can distinguish between noise and a legitimate defamation claim.

When You Don’t Have a Case: Business Lessons from the Courtroom

These cases don’t just apply to journalists and lawyers—they’re a cautionary tale for anyone managing public criticism. Business owners facing harsh reviews or social media backlash often feel compelled to fight back. But acting on emotion rather than strategy can lead to poor outcomes – and a defamation complaint of your own.

Here’s the reality:

Why Strategic Legal Advice Matters

When reputational harm threatens your business, it’s essential to act thoughtfully. An experienced business lawyer can evaluate the situation, anticipate potential pitfalls, and guide you toward the best course of action—whether that’s a lawsuit, a carefully crafted response, or other strategic measures.

Effective legal counsel isn’t just about knowing the law. It’s about understanding how to use it to protect your interests without creating unnecessary risk.

How Hopkins Centrich Can Help

At Hopkins Centrich, we know the difference between a legitimate defamation claim and a waste of your resources. When your business faces online reputational harm, we:

The Court of Public Opinion vs. the Court of Law

In the age of Yelp, Twitter, and Google reviews, reputational damage often happens faster than the facts can catch up. But businesses don’t have to let public criticism dictate their next move. With the right legal counsel, you can address reputational challenges strategically—without falling into the trap of emotional, misguided decisions.

Contact Hopkins Centrich today to protect your business with clarity, confidence, and strategy. In a world where opinions fly faster than facts, winning requires more than just being mad—it takes being smart.