How law firm Robbins Geller won $434 mln post-dismissal settlement with Under Armour | Reuters

Does the outcome of a securities class action hinge on which shareholder firm is handling the case?

Not most of the time, according to the latest draft of an article for the NYU Law & Economics Research Paper Series.

In Paying for Performance? Attorneys Fees in Securities Fraud Class Actions, law professors Adam Pritchard of the University of Michigan, Stephen Choi of New York University and Jessica Erickson of the University of Richmond analyzed outcomes in nearly 2,500 securities class actions filed between 2005 and 2018 to find out if 15 top-tier shareholder firms — defined as law firms whose settlement averages exceeded $30 million — obtained better results for shareholders.

After controlling for the quality of the cases by considering objective factors such as parallel government investigations, accounting restatements and competition for appointment as lead plaintiff, the study authors found that top-tier firms pour vastly more time and money into their cases — but don’t achieve markedly different results in most of them.

Source: How law firm Robbins Geller won $434 mln post-dismissal settlement with Under Armour | Reuters