The Boeing Lesson: Laws That Prevent Frivolous Litigation Also Reduce the Likelihood of Product Recalls

What happens when legal changes aimed to prevent frivolous lawsuits make it more difficult for shareholders to hold managers accountable? This Journal of Marketing study documents the unintended consequence of firms becoming less likely to recall products.

Read an in-depth recap of this research here: https://www.ama.org/2024/05/07/the-boeing-lesson-laws-that-prevent-frivolous-litigation-also-reduce-the-likelihood-of-product-recalls/

Read the full Journal of Marketing article here: https://doi.org/10.1177/00222429241231236

Reference: Arvid O. I. Hoffmann, Chee S. Cheong, Hoàng-Long Phan, and Ralf Zurbruegg, “So, Sue Me…If You Can! How Legal Changes Diminishing Managers’ Risk of Being Held Liable by Shareholders Affect Firms’ Likelihood to Recall Products,” Journal of Marketing.

Narrator: Adalgisa Butkewitsch

Acknowledgments: Sushma Kambagowni

Topics: product recalls, liability, lawsuits, marketing management

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