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

Visit the Internet Law Centre for professional and unbiased advice.

Internet Law Centre