Fear, Uncertainty and Doubt. Also known as scare tactics, either accomplished by threat or making the opponent doubt his standpoint. Not only used in lawsuits, but also in politics and military propaganda.
The company's FUD spreading caused many supporters to abandon their cause, except for the few that could see through its scaremongering propaganda.
Although "fud" is widely accepted in Scotland as being a slang term for the female reproductive organs, it is generally used as a pejorative to describe someone who has just done something stupid, often in situations where they've either been impulsive or it was blindingly obvious beforehand that it was a stupid thing to do. It can also be used to describe someone who irritates everyone because they try to impress everyone all the time & invariably talk a load of pish.
"Haw ya big fud!" (angry)
Person A "Ah canny be fucked wi him!"
Person B "How?"
Person A "Coz he's a pure fud!"