Question

now balance
in 2011, kimberly carey, victoria molinarolo and shannon dilbeck sued new balance for making claims that their truebalance and rock&tone shoes helped tone butts and burned 8 percent more calories than regular sneakers. the plaintiffs argued that not only were the claims false, but the shoes could potentially cause injury to the wearers. a massachusetts judge sided with the women, and new balance was ordered to pay $2.3 million — up to $5,000 for each of the women, and $100 refunds to customers who purchased the shoes, huffington post reported.
philip morris
philip morris is the company behind some of the most well - known cigarette brands, and its one of the cigarette manufacturers that was sued by several u.s. states to recover the costs incurred to treat sick and dying cigarette smokers. the master settlement agreement was reached in 1998, and it required the tobacco industry to pay the settling states billions of dollars annually forever, and imposed restrictions on the sale and marketing of cigarettes by the participating manufacturers. in fiscal year 2019, the participating states will collect $27.3 billion from the settlement and taxes.
philip morris has since re - branded itself to pmi, and is now focusing on the development and sales of its smoke - free tobacco products.
red bull
it turns out red bull does not give you wings. benjamin careathers filed a class - action lawsuit against red bull in 2013, alleging that the companys claims that the energy drink increased performance, concentration and reaction speed were misleading. the company was ordered to pay $13 million in a settlement, which would be put toward a fund that would reimburse individuals who had purchased a can of red bull over the prior 10 years. individuals could also opt to get two free red bull products in lieu of the cash, bevnet reported.
businesses and lawsuits discussion activity
what was the legal issue(s)?
what could they have done differently to prevent this issue?
what are your overall thoughts and feelings? for example, do you think the outcome was fair?
how has this lawsuit changed businesses forever?

Explanation:

1. Legal issue: False advertising and potential harm claims. New Balance made unsubstantiated performance - related claims about their shoes, Philip Morris faced lawsuits for health - related costs due to cigarette sales, and Red Bull had false performance - enhancing claims.
2. Prevention: Conduct thorough research before making claims, ensure marketing is accurate and not misleading, and comply with regulations on product safety and advertising.
3. Overall thoughts: The outcomes seem fair as companies should be held accountable for false claims. These lawsuits have made businesses more cautious about their advertising and product claims, and increased focus on compliance and transparency.

Answer:

1. Legal issue: False advertising and product - related harm claims.
2. Prevention: Thorough research and accurate marketing.
3. Overall thoughts: Outcomes seem fair; increased business caution and compliance.