On the stand in federal court Monday, Faruqi & Faruqi law partner and rainmaker Juan Monteverede testified. That might convince a jury to not convict him and his law firm of sexual misconduct. But the content of the testimony can damage significantly his personal brand and that of the law firm. We all know the old adage: The organization might win the lawsuit and go bankrupt.
What Moneverde said was this: At the party where he allegedly engaged in illegal sexual activities he was too drunk to have done that. Here (sub. req.) is the coverage by Max Stendahl in Law360, with the headline "Faruqi Atty Tells Jury He Was Too Drunk to Perform."
Both in discovery and in the trial process information can be disclosed which can reduce brand equity. That's why litigation represents such a reputation risk. Public Relations pros worth their salt frequently advise those threatened with litigation or presented with a lawsuit to settle, with a gag order about the terms and conditions.
Followers of this alleged sexual harassment lawsuit were stunned that the defendants didn't settle. What law firm and successful law partner want to take on the risk of what could and probably would come out!
After all, by its very nature, litigation is a wild card. That's what is hammered in the novel "Identical" by Scott Turow. It's a lawyer/politico who files a lawsuit during his campaign, contending defamation. That shakes loose a lot of data. Eventually he withdraws the lawsuit.
The shrewd course of action may well be to settle a confidential agreement, then orchestrate brilliant PR about the why of settlement.