Plaintiffs firms still reaping rewards from M&A lawsuits

Lawyers collect big legal fees while shareholders often receive nothing

The increase in M&A deal lawsuits—in which shareholders claim proposed transactions between companies are unfair in disclosure or pricing—isn’t letting up. According to the legal research firm Cornerstone Research, M&A class actions are the fastest-growing type of securities litigation, with shareholders having challenged 91 percent of deals greater than $100 million that were announced in 2010 and 2011.

Despite the fact that many judges and lawyers are critical of the fact that plaintiffs firms financially benefit more than shareholders from such suits, plaintiffs lawyers continue to collect big rewards.

Ashley Post

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