The Loewen Group, based in Burnaby, B.C., was one of the largest owners of funeral homes in North America. Throughout the 1980s and 1990s, the company pursued a strategy of growth through the aggressive acquisition of U.S. funeral homes. In 1990, Loewen purchased Wright & Ferguson, the largest funeral operation in Jackson, Mississippi. Shortly after the purchase, a dispute arose concerning an earlier contract involving Gulf Insurance. Gulf alleged that Loewen had breached this earlier contract and sued Loewen for damages of $107 million. In 1995, a Jackson jury awarded the plaintiff $100 million in compensation and $400 million in punitive damages. The award equalled almost half the value of Loewen’s assets and almost 13 times its 1994 profit of $38.5 million. Loewen vowed to appeal. However, under Mississippi law, Loewen was required to post a bond of 125 % of the award—$625 million—while appeals were pending. Rather than face several years of uncertainty, the company agreed to a settlement worth about $175 million. Despite the settlement, the litigation seriously undermined Loewen’s equity value and credit rating. The company eventually went bankrupt. Shareholders who lost their equity filed claims under NAFTA, but were unsuccessful. What does this case illustrate about the risks of doing business internationally and the uncertainties of litigation? How could Loewen have tried to avoid these uncertainties?