Small law

Research Proves That Class Action Law Firms are Worth Hiring
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)


Summary: A new study from a trio of professors has found that hiring major class action law firms to fight merger and acquisition transactions is worth the cost.

New research shows that top class action law firms are worth hiring, according to Newswise.


Randall S. Thomas, who is the John S. Beasley II Professor of Law and Business at Vanderbilt Law School, was one of the writers of the paper “Zealous Advocates or Self-Interested Actors? Assessing the Value of Plaintiff’s Law Firms in Merger Litigation.”

“We find that the presence of a top plaintiffs’ law firm is significantly and positively associated with a higher probability of lawsuit success,” Thomas said.

“These results hold even after controlling for selection bias – the likelihood that top law firms get to pick better cases that have higher chances of success.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

The paper will be submitted to a peer-review publication and was written by Thomas and C.N.V. Krishnan of the Weatherhead School of Management at Case Western Reserve University and Steven Davidoff Solomon from UC Berkeley School of Law.

The writers took a look at 1,739 class actions filed to challenge the fairness of mergers and acquisitions from 2003 to 2012. Two categories were created; top 10 and non-top 10 firms for plaintiff law firms to be herded into.

The firms were then added to a top five list based on ability to acquire large attorneys’ fees awards and popularity with informed plaintiffs.

A lawsuit targeted 97.5 percent of large mergers and acquisitions in 2013.

“We find that top plaintiffs’ law firms do engage in more vigorous litigation and produce statistically significantly superior results,” the study said. “Adjusting for … selection bias, we still find that topmost 5 law firms file more documents, have fewer cases dismissed, win more procedural motions and obtain more substantive settlements.”

The writers of the paper have suggested that the data be “grist for pursuing any reform effort of shareholder litigation generally, such as judicial involvement in the appointment of lead plaintiffs’ counsel in shareholder class action litigation.”

“In other words, not all plaintiffs’ law firms are alike and lawmakers, judges and regulators should act accordingly,” the writers said.

Would you hire a large class action law firm to fight a merger and acquisition transaction? Share your opinion with us in the poll below.

Have you Ever Hired a Large Class Action Firm to Fight a Merger and Acquisition Transaction?

View Results

Loading ... Loading ...

Image credit: settlementonline



Senior Corporate Counselor - Remote

USA-NY-New York City

We are an innovative, intent-driven company that believes in building the future and we are looking ...

Apply now

Associate Attorney

USA-FL-Coral Gables

Job details Salary $52,000 - $75,000 a year Job Type Full-time Number of hires for th...

Apply now

Director, Legal & Government Affairs


  Director, Legal & Government Affairs Lakeland, FL CLICK HERE TO APPLY JOB SUMMARY...

Apply now

Attorney 0-3 Years Experience

USA-CA-Woodland Hills

San Fernando Valley Defense Firm seeks attorney with 0-3 years of workers\' compensation experience....

Apply now




Search Now

Junior to Mid-level Investment Management Associate Attorney

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks junior to mid-level investme...

Apply Now

Mid-level Debt Finance Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks mid-level debt finance-focus...

Apply Now

Senior Business and Corporate Law Attorney


Murrieta office of our client seeks a senior business and corporate law attorney with 3+ years of bu...

Apply Now

Most Popular


To Top