A firm is being sued for ($550,000) by an unhappy customer; the lawsuit is in its early
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A firm is being sued for \($550,000\) by an unhappy customer; the lawsuit is in its early stages, and the firm feels that it has a good case and is willing to defend itself.
However, legal costs will be high, and the company, in all likelihood, will be pre¬ pared to settle with the ex-customer for \($150,000\). Why is liability recognition for this lawsuit complicated at this stage?
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