Great products or services, or abundant demand from happy customers, can’t save even the best companies from the ravages of a costly legal battle. These cases may keep a low profile, but their stakes can be incredibly high.
Big outlays
More than 35 states are now investigating whether Google
I'm not too worried about Google, given the more than $9 billion in cash and cash equivalents recently filling its coffers. Still, legal costs can be significant even for giants. The search giant recently wrapped up a years-long dispute with Viacom
In another case, Charles Schwab
Big trouble
Smaller, less cash-rich companies face even greater dangers. Psystar, for instance, got sued by Apple
These legal skirmishes can end in painful irony. Years ago, sound-card-maker Aureal fought a patent infringement lawsuit from Creative Labs in court and ultimately prevailed. But the battle was so costly that the company went out of business, only to have its assets bought by ... Creative. Ouch.
Similarly, Intuitive Surgical's
Lawsuits can cost even victorious companies a lot of money, not to mention time and effort. Be careful when investing in a company with significant or potential legal issues. Will the lawsuit filed against Sirius XM Radio
Legal considerations aside, you needn't look far for stocks that can make you rich.