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Litigation

Boston University School of Law

Deal litigation

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Does The Quality Of The Plaintiffs' Law Firm Matter In Deal Litigation?, David Webber, Adam B. Badawi Jan 2015

Does The Quality Of The Plaintiffs' Law Firm Matter In Deal Litigation?, David Webber, Adam B. Badawi

Faculty Scholarship

This Article examines how the stock market reacts to the filing of lawsuits against mergers and acquisitions targets as the quality of the plaintiffs’ law firm varies. Our primary dataset includes all cases of this type filed in the Delaware Chancery Court from November 2003–September 2008. We group the law firms that file these suits into higher and lower quality categories using several quantitative and qualitative measures. We hypothesize that target firm share value should reflect the likelihood that litigation will result in an increase in merger consideration. This effect is likely to depend, at least in part, on ...