Not quite, says a study in the Financial Analysts Journal by Rob Bauer and Robin Braun. If a suit is for something other than illegal insider trading, the long-term effects of litigation for shareholders are not good, despite the fact that many cases involve injunctive relief with supposed corporate governance improvements. I've long theorized that most injunctive relief in class action settlements is for the benefit of attorneys to claim that they accomplished something when they are unable to obtain pecuniary relief; the fig-leaf of trivial changes allows the attorneys to claim fees. Coverage from Fisher @ Forbes, Frankel @ Litigation Daily ($), WSJ Law Blog, and Coyote via OL.
Do securities lawsuits help shareholders?
- Second Circuit: Pragmatism Trumps Truth
- Advice with Borders
- Striving for Justice
- Businessweek on class actions
- Two podcasts
- "A Facebook Deal That Needs Unfriending"
- FACTA shakedown files: Albright v. Bi-State Dev. Agency
- Dry Max Pampers Litigation update
- CAFA violation in Korean Air Passenger settlement
- The cy pres morass and In re BankAmerica Corp. Securities Litigation
- Dennis v. Kellogg on remand
- Silverman v. Motorola
- Better bounty hunting in securities litigation?
- Marek v. Lane & Dry Max Pampers in today's NY Times
- $3M more for Wyeth shareholders after CCAF objection