Attracting the Sharks: Corporate Innovation and Securities Class Action Lawsuits

An earlier version of this paper circulated under the title “Litigating Innovation: Evidence from Securities Class Action Lawsuits.” The authors thank Brian Fitzpatrick, Jillian Grennan (discussant at the European Finance Association Annual Meeting), Wei Jiang (discussant at the National Bureau of Economic Research’s Summer Institute Law and Economics workshop), Louis Kaplow, Jonathan Karpoff, Scott Kominers (discussant at the American Finance Association Annual Meeting), Christian Leuz, Ann Lipton, Elena Pikulina (discussant at the University of North Carolina at Chapel Hill's Junior Finance Roundtable), Emanuele Rizzo, Doug Skinner, Tom Wollmann, Luigi Zingales, and participants at the following events and institutes for valuable comments: the American Finance Association, Berkeley Law, Boston University, Chicago Booth, the European Finance Association, the Federal Reserve Bank of New York, Frankfurt School of Finance, Goethe University, Harvard Law, the National Bureau of Economic Research’s Summer Institute Law and Economics workshop, Northwestern Kellogg, Tilburg University, Toronto Law, Tulane University, the University of North Carolina at Chapel Hill’s Junior Finance Roundtable, the University of Cambridge, the University of Mannheim, the University of St. Gallen, and WHU–Otto Beisheim School of Management. The authors also thank Jyothsni Gondesi and Zichen Zhao for excellent research assistance.