I just saw this one about UA today. http://finance.yahoo.com/news/shareholder-alert-levi-korsinsky-llp-161900718.html This isn't specifically about UA, I'm just using it as an example. I've seen this a lot, but I've never actually seen any shareholders(or lawyers for that matter) ever win or gain anything from these lawsuits. Which leads me to suspect that they have buddies at some hedge fund somewhere. Or maybe I'm going too far down the rabbit hole with this one? But backing up a bit, has anyone ever gotten money from these suits? Has any actually been successful? What purpose do they serve aside some temporary catharsis for bagholders? I did lose money in THQIQ a number of years ago, and I did contact the law firm involved in the lawsuit, but as soon as they found out how much I lost they were not the least bit interested in talking to me. (It wasn't a whole lot of money.)
Ambulance-chasing class-action tort lawyers trying to strike it rich. I am seeing more and more of those lawsuits too with various companies. Picking on tiny little non-disclosures, share price irregularities, etc., and you see it not just in America but here in Canada too; it's so annoying. And you don't win anything if you sign up as part of the plaintiffs. The most you win is like 50 cents cuz the plaintiff pool is SO big and the lawyers take out a huge chunk from the winnings that is IF you win. You should read this book by John Grisham: The King of Torts. Described those kind of vulture lawyers to the T. Very entertaining read.
%% Good question. I noticed their [UA]stock price past 12 months + they have 6,500 employees. Without commenting if they[UA] are guilty or innocent; the good side of class action lawsuits, is they do justice, even if the lawyers get a huge %.Many times the lawyers fees alone , in a class action suit can be a good punishment or reward. Some sued Remington Arms/DUPont , years ago. For [my opinion] a false charge on inferior shotgun barrels.At that time i only had one Remington shotgun; got $20 check, settlement.If i did not claim it, it simply would have been split among the Remington owners that responded.Over all, those lawsuits can be a good check + balance , but anyone that knows guns knows Remington Arms[owned by Cerberus Capital, now] does excellent work,since 1816. So some abuses-injustice may take place, sometimes.