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The pitfalls of forum selection

Some keys to help avoid redundant litigation

If you could wave your magic wand and eliminate multi-jurisdictional litigation against your company, would you do it? Should you?

The most tiresome type of litigation is redundant litigation. The classic case arises when a public company's board agrees to sell the company. Shareholders who want to challenge the price accepted by their board absolutely must be able to do so—but there's no point in litigating the same question in multiple jurisdictions. Nevertheless, when a public company decides to sell itself, it will face on average more than five suits about this one transaction. It's an unfortunate waste of time and resources. The idea that these plaintiffs need to be able to sue at the local courthouse is hopelessly archaic. The plaintiffs (and their attorneys) bringing these suits are anything but provincial.

Priya Cherian Huskins

Priya Cherian Huskins, Esq., is senior vice president of Woodfruff, Sawyer and Company. She can be reached at

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