Law Firm Market Share and Securities Class Action Litigation Outcomes

Published In

Quarterly Review of Economics and Finance

Document Type

Citation

Publication Date

1-1-2020

Abstract

Using a large sample of securities class action lawsuits, we examine the association of law firm market share with litigation outcomes. We find lawsuits with top market share plaintiff law firms are less likely to be dismissed and take longer to be dismissed and to reach settlement. In contrast, lawsuits with top defendant law firms reach settlement faster. Top market share defendant law firms are neither associated with suit dismissal nor with speed of dismissal. Finally, neither top plaintiff nor top defendant law firms are associated with the cash and/or total settlement amount. These results suggest plaintiff and/or defendant law firm market share is an important factor in securities class action litigation outcomes. The results favor the view that plaintiff and defendant law firms with a higher market share are more reputable and better serve the interests of their respective clients in securities class action litigations.

Rights

© 2020 Board of Trustees of the University of Illinois

DOI

10.1016/j.qref.2020.10.013

Persistent Identifier

https://archives.pdx.edu/ds/psu/34932

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