Publications

Sue or Be Sued

Spring 2006
Howard O. Godnick
Activist Investing Developments - Spring 2006

Most parties seek to avoid litigation. But for the activist investor, litigation can serve as a powerful tool in an activist campaign. Litigation can create momentum for the activist’s cause, give the activist a forum in which to voice ultimate objectives and, most importantly, spur board action. On the other hand, litigation is a complex and powerful tool, and “firing the first shot” has serious implications in both the legal arena and the broader court of public opinion. One thing is certain: whether the activist sues or waits to be sued, the activist must be ready for the fight.