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The reputational damage translates directly into financial losses. Decreases in sales, increased marketing costs to counter negative publicity, and potential legal battles can significantly impact a company’s bottom line. Even if the accusations are false, defending against them can be expensive and time-consuming. In some cases, substantial allegations can lead to hefty fines, penalties, and even criminal charges. Conspiracy theories can also disrupt a company’s daily operations. Dealing with negative publicity, responding to inquiries, and managing employee morale during a crisis can divert resources and attention from core business activities. Employees may become demotivated, leading to decreased productivity and increased turnover.