Originally Posted by George Knighton
It's a tax writeoff for them.
It offsets their revenue, but the stockholders, owners and board directors do not personally take a hit unless it's a Subchapter S corporation (unlikely in this kind of action).
even so, those lawyer's fees have to come somewhere. with it being a tax writeoff, that hurts everyone by spreading that burden to the taxpayer for that bit of revenue. either way, these frivolous lawsuits cost time and money regardless of whether or not it goes to trial or is thrown out. that cost has to be burdened somewhere, and since it is a tax writeoff we as taxpayers pay that cost.