Steps to Take if Your Company Has Been Defamed in California

In today’s digital world, a company’s reputation can be ruined instantly. A false post on X (formerly Twitter) or another social media platform, a negative review, or a misleading statement can quickly go viral, causing reputational harm. On top of damaging a company’s reputation, defamation can also cause financial harm. Luckily, in California, the law offers ways to protect your business and hold people accountable. In this article, we look at the key steps to take if your business has faced defamation in California and how you can protect your company’s reputation and financial stability.

Business Defamation in California: A Brief Overview

Defamation arises when someone makes a false statement about another party that harms their reputation. Under California law, defamation falls into two categories: libel and slander. The former involves false statements that are written or published, including online reviews and social media posts. On the other hand, slander involves false statements made in spoken form, such as live broadcasts or podcasts.

In California, to prove that your business has faced defamation, you generally need to establish the following elements;

1. A false statement of fact was made about your business
2. The statement was shared with a third party
3. The statement caused reputational and/or financial harm
4. The one who made the statement acted negligently or with malice

What to Do if Your Company Has Been Defamed

If your company has faced defamation, here are the key steps to take;

Step 1: Gather Evidence

The first step is to document all false and damaging statements made against your business. Take screenshots of online posts, reviews, or social media content. Save copies if the defamation happened in emails, private calls, or private messages. Ensure you note who made the statement, when they made the statement, and to whom the statement was communicated.

Step 2: Assess the Damage

Next, assess the damage that has been done. For instance, have you lost clients, contracts, or revenue since the false statement was made?  In California, you generally cannot take legal action against someone for defamation if you have not suffered any actual damages. Collect evidence that can help prove your losses and demonstrate a link between the defamation and harm suffered, such as canceled contracts, customer emails, and sales reports.

Step 3: Avoid Retaliation

Responding aggressively can be tempting, but doing so can escalate the situation or expose you to counterclaims. For example, do not respond to a defamatory post on social media by posting a defamatory post about the individual or business that made the original statement. Remaining calm can not only help protect your legal rights, but it can also boost your credibility.

Step 4: Consult a California Business Litigation Attorney

California defamation laws are quite complex. Before taking any further steps, it is best to seek advice from a knowledgeable business litigation lawyer. An attorney can assess the statement(s) and determine if you have a valid defamation case. Once they confirm you have a case, they can advise on the best way to proceed. For example, an attorney can help you determine if you should request a retraction pursuant to California Civil Code section 48a. If you must proceed with a lawsuit, a skilled lawyer can calculate the full extent of recoverable damages and ensure you comply with the statute of limitations.

Contact Us for Legal Help

If your business has faced defamation, contact our experienced business litigation attorneys today at SAC Attorney LLP for legal guidance.