The Dynamics of a Scandal: No Predicting How Sofie Biosciences Story Could Impact Business

 Seasoned players in public relations won't get replaced by Generative AI. They have a deep understanding about how bad press and even formal legal actions won't necessarily "hurt" a business. Actually the reverse could be true. Cagey watchers of the scandal can conclude: That's the kind of firm I want to work with, that's one which sizes up the angles and pushes against traditional boundaries.

So, the recent very long form expose in Bloomberg Law about lawyers at Paul Weiss and Reed Smith might not have a significant negative impact on the business development of either or scare off current clients. The raw story is essentially that Paul Weiss' Jeffrey Marell and Reed Smith's Michael Sanders structured the transactions without full disclosure. Here is a snippet:

" ... accusations by Joel Cohen, a screenwriter best known for his work on “Toy Story,” [allege] that Sofie Biosciences Inc. bilked him and his wife out of at least $38 million. They allege that Sofie deliberately undervalued assets acquired in an earlier deal that they helped finance to reduce the number of preferred shares they were issued – which then watered down their returns when Sofie later agreed to sell a majority stake to private equity firm Trilantic North America."

This was put in play by a whistleblower complaint to the SEC. There are also two lawsuits. 

Given the complexities of financial transactions there'll be lots that those accused can put forward by way of explanation and in their defense. Those who require similar services might not balk about this kind of allegation. Of course, some could. 

Sure, scandals are juicy. They get attention. Competitors and enemies can be giddy with joy at the supposed misfortune. The story could have legs.

But beyond that there's no predicting how the business will be affected, especially long term.

Remember all those public relations attacks on Big Oil, ranging from supposed windfall profits to oil spills. The media chased the statistics, for example, on how many were ripping up their Big Oil credit cards. But inside the corporations were the other stories of more applications for credit cards and increasing revenues. 

Incidentally, professionals usually come to an intuitive career coach/tarot reader like myself because of "trouble." My mission is to guide how to navigate how to manage the whatever. Of course, what kicks in is the adage: It's not what happens. It's how you handle it. Let's see what Paul Weiss and Reed Smith do about this one.

Thrown off your game, maybe the first time since you started working? You made all the right moves and then the world moved in another direction.

Intuitive Coaching. Special expertise with transitions, reskilling and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. There’s no risk.