Virginia’s business conspiracy statute
Virginia is one of the few states with a statutory cause of action aimed squarely at coordinated harm to a business. Under Virginia Code §§ 18.2-499 and 18.2-500, any two or more persons who combine to willfully and maliciously injure another in his reputation, trade, business, or profession may be liable for three times the damages sustained, plus the costs of suit and reasonable attorney’s fees. Injunctive relief is also available.
The statute does not require proof that the defendants acted out of personal hatred. Virginia courts require legal malice: that the defendants acted intentionally, purposefully, and without lawful justification to injure the plaintiff’s business. The statute protects business and property interests, not purely personal or employment interests, and it must be pled with particularity. When it applies, it changes the economics of a case entirely.
Common-law civil conspiracy
Alongside the statute, Virginia recognizes common-law civil conspiracy: a combination of two or more persons to accomplish an unlawful purpose, or a lawful purpose by unlawful means, resulting in damage. Conspiracy is not a freestanding wrong; it requires an underlying tort such as fraud, conversion, tortious interference, breach of fiduciary duty, or misappropriation of trade secrets. Its value is that it makes each conspirator liable for the acts of the others, which matters when the person who did the damage cannot pay and the person who directed it can.
The fact patterns we see
A group of employees who plan their departure while still employed, take customer lists and pricing, and open a competing shop. A former partner who coordinates with a vendor to divert business. Competitors who spread false statements to a client base. Family members or insiders who combine to strip a company of its assets before a buyout. In each, the question is the same: who agreed with whom, to do what, and what did it cost you.
We obtained a $1.2 million judgment for conversion, defamation, and violations of the Virginia Business Conspiracy Act in connection with two employees who conspired to steal from and defame their former employer. As part of a three-firm team, we also helped secure an $800 million judgment against a designated foreign terrorist organization for a conspiracy that inflicted narco-terrorism, extrajudicial killing, and torture on American service members. No case is too big, and no opponent too daunting.
Conspiracy cases are won on the record: the messages, the timing, the money. We build that record before we file.
Defense
Because the statute carries treble damages and fees, it is sometimes pled aggressively against businesses and individuals who did nothing more than compete. We defend those claims as well, holding plaintiffs to the strict pleading and proof requirements Virginia courts impose.
What This Looks Like in Practice.
International Civil Conspiracy
Our firm was part of a three-firm team who successfully obtained an $800 million judgment against a designated foreign terrorist organization for narco-terrorism, extrajudicial killing, and torture perpetrated against military service members. No case is too big and no opponent too daunting for White Horse Law Group.
Civil Litigation: Business Conspiracy
Jeff successfully obtained a $1.2 million judgment for conversion, defamation, and violations of Virginia’s Business Conspiracy Act in connection with two employees who conspired to steal from and defame a former employer.
Matters are described in general terms to protect client confidentiality. Prior results do not guarantee a similar outcome. Each case is unique and must be evaluated on its own merits. See all victories →
Read more client reviews →“One of the finest business litigation attorneys in Hampton Roads.”
Jeff combines great legal skill with forward-sight focus and massive compassion for his clients. He is not intimidated by the size of the corporation he is suing or the size of the law firm defending the case. Integrity and dedication are the two words that best describe Jeff.
Questions We Hear Often.
What damages are available under the Virginia Business Conspiracy Act?
A prevailing plaintiff may recover three times the actual damages sustained, together with the costs of suit and reasonable attorney’s fees, under Virginia Code § 18.2-500. Courts may also enjoin ongoing conduct. Because the treble-damages and fee provisions are mandatory once liability is established, the statute is a powerful lever in both litigation and settlement.
Can I sue my former employees for conspiring to compete against me?
Competition by itself is lawful. What Virginia’s conspiracy law reaches is a combination to injure your business by unlawful means or with legal malice, for example by misappropriating confidential information, breaching duties of loyalty while still employed, or making false statements to your customers. Whether the facts of a departure cross that line is intensely factual, and it is worth having reviewed early.
How long do I have to bring a business conspiracy claim in Virginia?
Business conspiracy claims for injury to property are generally subject to Virginia’s five-year limitations period, but the underlying torts and related claims may carry shorter periods, and the answer depends on the nature of the injury alleged. Do not rely on the longer period without advice; the shorter clocks may control parts of your case.
Does a conspiracy claim require an underlying wrong?
Yes. Both statutory and common-law conspiracy in Virginia require proof of an underlying unlawful act, such as fraud, tortious interference, breach of fiduciary duty, or defamation. A claim that a group merely combined to do something lawful will not survive. Identifying and proving the predicate wrong is where these cases are built.