most contested issues in securities litigation: pleading scienter. The Tellabs decision reversed a lenient Seventh Circuit …

We examine the relation between litigation risk and IPO underpricing and test two aspects of the litigation …-risk hypothesis: (1) firms with higher litigation risk underprice their IPOs by a greater amount as a form of insurance (insurance … effect) and (2) higher underpricing lowers expected litigation costs (deterrence effect). To adjust for the endogeneity bias …

Shareholder litigation risk, measured using the staggered adoption of universal demand (UD) laws in 23 states from 1989 … laws are not passed. To explain the relation between litigation risk and returns, we show that the relation is more …

This is the first comprehensive examination of the stock option backdating litigation. One reason why it is important … to study the stock option backdating litigation is that it was a blend of financial reporting fraud and executive … and thus provides a unique research opportunity, since typical financial reporting litigation usually results in …

We analyze class action litigation as a corporate governance device. Firms that have lower internal governance …