2 Reasons Why Amazon Sellers Should Sue & Bring Claims to Recover Damages

As an Amazon seller, when should you consider using the courts? When should you consider suing another company or suing another person? Well, the way I see it, there are really two reasons that you’d ever start litigation:

Number one, financial.

They have caused you to suffer enough money damages that going after them in court is financially worthwhile for two reasons. The cost of your litigation will be a lot less than what you hope to recover. We always look for a three to five X return in litigation costs. Also, you can actually collect at the end of the day. So suing is easy. Winning is not all that difficult in the right fact scenario, but there is never ever a time you want to sue for financial reasons if you can’t collect at the end of the day, and most lawyers won’t tell you that.

A second reason to sue has nothing to do with financial gain, but has everything to do to standing up to big brands or standing up to brand protection companies and telling them you’re not going to take it lying down.

Why would you do that? In a case I’m involved in right now, our client sued another company because they were making baseless counterfeit complaints. Now, is the money necessarily worthwhile? Absolutely not. However, since we started this litigation, they have not made a single additional complaint against our client. So sometimes you need to go after people with nuclear weapons and litigation can do that. So those are the two basic reasons to file a lawsuit as an Amazon seller. To recover your damages and it’s got to be a lot of money that you can actually collect.¬†And number two, to stop big brand or stop other companies from making complaints against you, because they know if they continue to do that, you are going to come after them really hard and really strong.

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