Legal Definitions - sham lawsuit

Definition: A sham lawsuit is a legal action that is filed with the intention of deceiving or manipulating the legal system, rather than seeking a legitimate resolution to a dispute. It is a frivolous or baseless lawsuit that is brought for an ulterior motive, such as harassment, intimidation, or to gain an unfair advantage.

Example: An example of a sham lawsuit is when a company files a lawsuit against a competitor for patent infringement, even though they know that the competitor's product does not infringe on their patent. The purpose of the lawsuit is not to protect their intellectual property rights, but to tie up the competitor in legal proceedings and drain their resources.

Explanation: The example illustrates how a sham lawsuit can be used as a tactic to gain an unfair advantage in business. By filing a baseless lawsuit, the company is able to tie up their competitor in legal proceedings, which can be costly and time-consuming. This can give the company an advantage in the marketplace, even if they do not have a legitimate claim.