"We have already shown that stock price reactions are significantly negative for both sued

firms and non-sued firms in the same industry, and that a significant amount of the total

price reaction has been previously anticipated by investors prior to the actual filing of the

lawsuit. The purpose of this section is to examine whether the size of the price reaction is

related to the propensity to be sued as well as other factors used to estimate the lawsuit

propensity model in Section VI. "

http://papers.ssrn.com/sol3/papers.c...

A. It seems to me all of this talk of legal action may account for at least some of the selling and the current depressed share price.

B. Of course if a suit is filed we can be virtually assured that the share price will drop further.

Is that what everyone who is on the shareholder activism bandwagon wants?

If there is shareholder action that does not involve the threat of a class action lawsuit what does that look like and would it have any effect without that threat? Serious questions. What say you?

Have you thought this through?

I haven't seen a coherent strategy that does not have the negative effects of A & B above.

Let's get it out there for discussion!

Replies welcome.