LOL.. I don't think that the last sentence is true. Stake's reputation can't be damaged or the client base won't be impacted as a result of these frivolous lawsuits. Freeman is sore because his former business partners managed to build a successful venture without his involvement and now he wants a cut from their pie. According to Freeman, the other two used a mix of "a mix of bullying and unlawful tactics" to kick him out of the new venture. These are very serious allegations. But doesn't make any sense when presented with zero proof to support the claims.
I might be wrong too but when it comes to business, it's almost undeniable that issues aren't good for the company's image because that can totally affect your customer too especially when they know that there's a lawsuit that was filed by a former partner. So, of course most clients will always prefer other business that doesn't have any issues, it's not like that they need to know or interested what's going on.
Probably, you'll think and say that none of these statements are true because you didn't experience to have your own business that's why you can't relate. Again, I might be wrong too