How Companies Pay Triple to Lose Court Cases on Purpose

When a company knows it will lose a lawsuit, fighting to the end can actually be the rational choice. This episode explores "tokenistic litigation" — the practice of mounting a defense not to win, but to avoid the collateral damage of admitting fault. From insurance premium spikes to regulatory investigations to copycat lawsuits, the costs of settling can dwarf a trial loss. We examine the perverse incentives driving this behavior, how often it happens (potentially tens of thousands of cases a year), and why existing legal mechanisms fail to stop it. Episode #094072 — open it directly at myweirdprompts.com/094072