RT Journal Article
SR Electronic
T1 Causes and Consequences of Venture Capitalist Litigation
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 59
OP 75
DO 10.3905/jpe.2006.650460
VO 9
IS 4
A1 Xuan Liu
A1 Imants Paeglis
A1 Thomas Walker
YR 2006
UL https://pm-research.com/content/9/4/59.abstract
AB Sticking with an analysis of the situation postdeal, Liu, Paeglis, and Walker take us into the scary world of SEC lawsuits thrown at venture-backed public companies. Does the strong reputation of a venture firm appear to attract litigation due, perhaps, to the deep pockets of the organization? That's a scary thought and these authors test it. Are the lawsuits frivolous or do they appear to have merit? Do firms continue to fund companies after the imposition of litigation? Do venture firms named in lawsuits tend to keep or lose their reputational rankings? Can you avoid lawsuits by monitoring your portfolio firms more intensively? We thought you might be interested in the answers to some of these provocative questions.TOPICS: Private equity, exchanges/markets/clearinghouses, risk management, statistical methods