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Extortion vs blackmail12/24/2023 ![]() There are other types of threats that are a natural part of settlement negotiations. The plaintiff’s demand, if it is to be taken seriously, must be accompanied with some form of threat – most often, a threat based on the strength of the plaintiff’s case, the outrageousness of the defendant’s actions, and the likelihood that a jury will return a verdict significantly greater than the settlement demand. ![]() Most civil lawsuits settle before trial, and the settlement process usually begins with a demand for payment. When does a legitimate demand for payment in a civil case cross the line, legally and ethically, into blackmail or extortion? Where is the Line Between Settlement Negotiations or Extortion? We may be threatening to force them to pay, and the lawsuit that we file may expose damaging information that they don’t want the public to see – but is that extortion? It’s a common dilemma for plaintiff’s attorneys – a defendant corporation gets what they initially think is an outrageous demand and they call it extortion. Hard-nosed dispute resolution or blackmail?Īttorney Michael Avenatti, who until recently represented porn star Stormy Daniels in her case against President Trump, was arrested and charged with extortion for what he will surely characterize as a settlement demand from Nike for $25 million (he is accused of threatening criminal prosecution if they did not pay him). In recent news, American Media, Inc. (AMI) was excused of committing blackmail when they threatened to publish embarrassing, nude photos of Amazon founder Jeff Bezos unless he ended his investigation into the company. Where is the line between settlement negotiations or extortion?
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