In today`s business world, contracts are the backbone of a successful and profitable company. They provide stability and security in business dealings, which is why they are so important. However, sometimes contracts are breached, and when they are, it can lead to a wide range of legal issues. Here are a few recent breach of contract cases in the news.
1. Facebook`s Breach of Contract with Cambridge Analytica
In 2018, it was revealed that Facebook had breached its contract with political consulting firm, Cambridge Analytica. The company violated Facebook`s data privacy policies by harvesting the personal information of 87 million Facebook users without their permission. As a result, Facebook was hit with a $5 billion fine by the US Federal Trade Commission for failing to live up to its obligations to protect user data.
2. Robinhood`s Breach of Contract with Investors
In early 2021, Robinhood, a popular trading app, faced a class-action lawsuit from investors who claimed the company breached its contract with them. The investors alleged that Robinhood failed to provide them with the best possible prices for their trades, as promised in the company`s user agreement. Robinhood agreed to pay $65 million to settle the lawsuit.
3. Gibson`s Breach of Contract with Dealers
In 2018, iconic guitar manufacturer Gibson faced a breach of contract lawsuit from several of its dealers. The dealers claimed that Gibson breached its contract by not fulfilling orders and failing to pay them for products they had already sold. The case was settled out of court, and Gibson agreed to pay undisclosed damages to the dealers.
4. Apple`s Breach of Contract with Qualcomm
In 2019, Apple and Qualcomm settled a long-running legal dispute over a breach of contract. Apple had accused Qualcomm of charging excessive royalties for its patented technology, while Qualcomm claimed that Apple had breached its contract by failing to pay royalties. The two companies eventually reached an agreement, with Apple agreeing to pay Qualcomm an undisclosed settlement amount.
These are just a few examples of high-profile breach of contract cases in recent years. It`s important for businesses to take contracts seriously and ensure they are fulfilling their obligations to avoid costly legal battles. For those who do find themselves in a breach of contract situation, it`s important to seek legal advice to minimize the impact on their business.