In the ongoing saga between Electrolux AB and the U.S. government, Electrolux’s CEO Keith McLoughlin committed a big faux pas at the most inopportune moment. When testifying during trial, McLoughlin provided incorrect information to the court as to the state of the competitive market in household appliances, The Wall Street Journal reports. As such, he may have inadvertently scuttled a $3.3 billion deal.
McLoughlin incorrectly testified as to the influx of lower priced appliances manufactured by Korean companies Samsung and LG. Once this incorrect testimony was realized, Electrolux’s legal team requested permission for McLoughlin to testify again. The court noted that the situation was most unusual.
Though many executives resist preparation efforts, over-preparedness is imperative when it comes to the testimony of employees at any level. During a deposition or at trial, the ramifications can be huge when incorrect testimony is given.