The Trial Lawyers’ New Merger Tax?
Lawsuits are filed in 96% of mergers and acquisitions valued over $500 million, according to a new report from Cornerstone Research (D & O Diary). In October, ILR released a paper analyzing the remarkable M&A litigation explosion, finding that “trial lawyers hold transactions hostage until they collect a ‘litigation tax,’ draining a share of the merger’s economic benefit away from shareholders and into the lawyers’ own pockets.”