Google"s founders have created the best search engine on the web, along with profits to make anyone happy. Not everything is going as smoothly as its founders had hoped. With the upcoming launch of Google"s stock something stands in its way. That something is an assortment of pending lawsuits. With these lawsuits Google may have its first issue of bad luck.
Google"s founders have plenty to be happy about these days, with growing profits and a solid ranking as most popular search engine on the planet. But as they prepare to launch what is expected to be the most sought-after initial stock offering of the year, an assortment of pending lawsuits threaten Google"s good fortune.
In federal, state and foreign courts, judges are weighing several suits, including one pursued by arch-rival Yahoo, charging Google with patent and trademark infringements tied to sales of search-related advertising. If plaintiffs prevail, observers say, it will hamper Google"s ability to pursue what has thus far been its biggest source of profits. "Their revenue model is becoming more and more based on advertising, and if there"s a limit on how they can do the advertising, that would have an adverse impact on their business," said Frank Bernstein, a partner at the law firm Sughrue Mion.