A Great Game: The Dynamics of State Competition and Litigation
37 Pages Posted: 13 Jan 2012 Last revised: 30 Mar 2015
Date Written: January 1, 2015
Abstract
We provide a multi-dimensional picture of jurisdictional competition for corporate litigation by examining merger litigation in a hand-collected sample of 1,117 takeovers from 2005-2011. We find that entrepreneurial plaintiffs’ attorneys drive this competition by bringing suits in jurisdictions which have previously awarded more favorable judgments and higher fees and by avoiding unfavorable jurisdictions. States with an apparent interest in attracting corporate litigation respond in-kind by adjusting judgments and awards to re-attract litigation. These states award higher attorneys’ fees and dismiss fewer cases when attorneys have been migrating to other jurisdictions. Our findings illuminate the dynamics and existence of jurisdictional competition for corporate litigation.
Keywords: Merger Litigation, Takeovers, Jurisdictional Competition, Delaware, Plaintiffs' Attorneys, Shareholder Class Actions
Suggested Citation: Suggested Citation
Register to save articles to
your library
Recommended Papers
-
By John Armour, Bernard S. Black, ...
-
By Jill E. Fisch, Sean J. Griffith, ...
-
Putting Stockholders First, Not the First-Filed Complaint
By Leo E. Strine, Lawrence A. Hamermesh, ...
-
Appraisal Arbitrage and the Future of Public Company M&A
By Minor Myers and Charles Korsmo
-
Corporate Short-Termism – In the Boardroom and in the Courtroom
By Mark J. Roe
-
By John Armour, Bernard S. Black, ...
-
Do Takeover Laws Matter? Evidence from Five Decades of Hostile Takeovers
By Matthew D. Cain, Stephen B. Mckeon, ...