Hundreds of public companies have adopted bylaws over the past two years requiring shareholders suing them to do so in a single court — an effort, advisers say, to impose some order on what had become a litigation feeding frenzy.
It seems to be working.
A new study finds that while shareholders still sue over virtually every corporate transaction — 96% for mergers over $1 billion in 2014, unchanged from prior years —- they’re doing it in fewer courts. Just 40% of deals faced suits in more than one jurisdiction, down from 62% in 2013, according to Cornerstone Research. The number of individual complaints filed per deal also fell to 4.5, its lowest level since 2008.