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?
- Prospective injunctive relief class actions and McNair v. Synapse Group Inc.
- Apple iPhone 4 bumper class action settlement
- Third Circuit argument in Dewey v. Volkswagen
- Dewey v. Volkswagen oral argument tomorrow
- How much is the Bluetooth settlement injunction worth?
- CCAF Seventh Circuit briefing on derivative shareholder suit standards
- Day v. Persels & Associates
- Bad typography evidence of bad faith?
- Apple class actions
- Around the web, February 21
- Cobell v. Salazar oral argument in DC Circuit
- Herzfeld & Rubin, Volkswagen, and Stockholm Syndrome
- The Carlyle IPO
- Sixth Circuit brief in Pampers Dry Max class action
- Behind the paywall
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