Defamation against a company – Can a company sue the defamer for damages?

Occasionally a spate of defamation against a company, particularly on the various investors’ forums, has the potential of influencing the company shares price which means there could be a sizeable portion of shareholders who lost some of their money as a direct result of defamation against the company.

In such case, can a company sue the defamer for damages for the loss of value of its shares?

The general answer is no because the company and its shareholders are separate legal entities, the shareholders will need to sue for damages independently of the company, after all, it is the individual shareholders who lost their money following the defamation on the company as opposed to the company itself.

Letter of apology for defamation – defamation against a company

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3 thoughts on “Defamation against a company – Can a company sue the defamer for damages?

  1. Pingback: Defamation Of Business On The Internet « Internet Law Expert

  2. Pingback: Business Reputation Tip Of The Day – Internet Law Expert « Internet Law Expert

  3. Pingback: Internet Lawyers: Are Website Hosts Responsible For Defamatory Comments Posted On Their Websites? | Internet Law | Legal Briefings « Internet Law Expert

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