Merger announcements often trigger a spate of press releases announcing that securities plaintiff’s firms are “investigating” the situation. Even if the evidence of wrongdoing is absent and the financial analysis thin, lawsuits may be the next step, because that’s where the money is [David Nicklaus, St. Louis Post-Dispatch]
One Comment
They put out the press releases to get attention from the press and (they hope) get quoted somewhere. The PLSRA killed any advantage to trolling for a bunch of individual plaintiffs; these days, the law firms have close relationships and delicate courtships of the large pension funds, so they can represent them if one of their large ownership stakes is affected.