On the persistence of law firm performance in securities class action lawsuits

Barry Oliver, Chuyi Yang and Lei Zhang

Accounting and Finance, 2025, vol. 65, issue 3, 2544-2588

Abstract: Using data from 1741 lawsuits filed in the United States, we show that the skill of plaintiff law firms, measured by the Dismissal Ratio, strongly predicts the outcomes of securities class action lawsuits. Skilled law firms weed out frivolous cases and achieve favourable outcomes. Lawsuits brought by skilled law firms are more likely to be settled and have larger settlement amounts, while the defendants experience a higher likelihood of CEO turnover. Less skilled law firms are more likely to have zero market share. Overall, the persistence of law firm performance implies traceable law firm skills.

Date: 2025
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