Corporate Litigation, Governance, and the Role of Law Firms'
|Speaker:||Luc Renneboog, Tilburg University|
|Date: ||Wednesday 17 November 2021|
|Location: ||Online via Zoom (link available from J.firstname.lastname@example.org)|
Corporations pay out large settlements to their shareholders and other plaintiffs as compensation for
corporate governance failures. Hired to achieve and improve settlements, plaintiff law firms can play a
central role in litigation outcomes. We provide first systematic evidence of their performance. In our novel
comprehensive dataset, top plaintiff law firms (“stars”) capture 48% larger settlements. Defendant
corporations’ litigation insurance coverage is also 39% larger, suggesting assortative matching of stars with
lawsuits that have ex-ante large expected payoffs. Stars’ visibility and information advantage vis-à-vis less
sophisticated plaintiffs help sustain their market share.