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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118111
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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client accusation

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A long standing client of ours recently accused us of 'leaking' information about a project to another supposed competitor of theirs, which is entirely false. All the while the competitor actually came up with the idea for the app before this client approached us with their project. In all it's defamation and we're worried about this accusation costing us future business. Is the best course of action to just ignore the client or pursue a possible defamation suit?
Suing clients is usually bad for business and should be a last resort. You need to have your company attorney send them a letter informing them that their statements regarding releasing the information is false and provide them with some evidence that the other company actually came up with the idea before your client. The lawyer will then tell them to cease and desist making such false statements or you would consider suing them for slander/defamation. Generally this works and the client will stop, but if not then you need to decide if you have to resort to suing.

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