Shareholders Don’t Fare Well in M&A Lawsuits, Study Finds

Shareholders might want to think twice before filing a lawsuit in response to a proposed corporate merger. Chances are good the effort wont pay off in the end.

By Tim Sprinkle | Updated on April 15, 2014

Shareholders might want to think twice before filing a lawsuit in response to a proposed corporate merger. Chances are good the effort won’t pay off in the end.

In fact, the odds of a legal challenge to an M&A deal resulting in monetary returns for shareholders fell to just 2% in 2013, according to a report released Tuesday by Cornerstone Research. That translates to just two monetary settlements in the last year in the U.S., down from four in 2012 and seven in 2011, among the high-dollar cases that Cornerstone’s experts studied.

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