The price reactions to corrective disclosures often serve as a benchmark for settlements in securities class action lawsuits. When the firm bears litigation costs, this benchmark creates a feedback effect that exacerbates the price reaction to news that contradicts managers' earlier reports....

This paper investigates whether shareholder class action litigation affects the takeover candidacy, premium, and completion rate of mergers and acquisitions involving defendant target firms. We use a comprehensive data set of publicly traded U.S. firms that became the targets of takeover bids...

Using comprehensive patent lawsuit data from 2000 to 2014, we find that a stock portfolio consisting of firms involved in patent lawsuits provides significantly positive stock returns (between 0.56% to 1.02% per month) in the following year. We propose and examine several possible explanations...