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Last Updated: February 18, 2026 7:39 am
by Aaron Winston

Loss of Reputation

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Compensation for harm to a person’s reputation, standing, or character resulting from wrongful acts or false allegations.

Loss of reputation, often stemming from defamation or wrongful accusations, is a type of non-economic damage that can be a significant component of personal injury claims. Since it’s difficult to put a precise monetary value on reputational harm, legal funding companies will consider the strength of the evidence and the potential impact on a plaintiff’s life and career when evaluating a case. Cases involving police misconduct, for example, might include claims for loss of reputation if false statements or actions by law enforcement have damaged the plaintiff’s standing in the community. If a claim is successful, compensation for this damage helps to restore the plaintiff’s standing and offset the harm caused by the defendant’s actions.

Significance: Considered a non-economic damage.


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