Litigation in multiple courts over the same basic claim continues to be a serious problem for corporate defendants. Indeed, some commentators argue the problem is getting worse. It is now almost certain that any merger or going-private transaction involving a publicly traded company will generate multiple suits. In fact, even the suits themselves now generate tag-along litigation.
There are several possible reasons for this phenomenon. Newer, more aggressive plaintiffs firms are said to be replacing the old guard in the plaintiffs bar. Trolling for clients is now commonplace, with plaintiffs firms posting Internet advertisements saying they are "investigating" any public transaction and asking to be contacted by stockholders. This has even occurred when a controlling owner just announces it is considering a transaction that will only occur much later, if at all. Suits follow, nonetheless, in apparent hope that a deal will actually occur.
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