Disclosure and lawsuits ahead of IPOs

Burcu Esmer, N. B. Ozel, Suhas A. Sridharan
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引用次数: 1

Abstract

We examine whether IPO registration disclosures expose firms to greater nonshareholder litigation risk. Using hand-collected data on lawsuits initiated at federal and state courts against IPO firms, we show that firms that submit their IPO registration statement with the SEC publicly experience a 16% increase in litigation risk between the registration filing and issuance date. Consistent with the public filing of the registration driving this heightened litigation risk, firms that file their registration confidentially under the JOBS Act do not experience such an increase in litigation risk. The effects of confidential filing are concentrated among business-initiated lawsuits, intellectual property/ contract lawsuits, and potentially meritless lawsuits. We find no disproportionate increase in post-IPO lawsuits for confidential filers, suggesting that withholding information during the IPO registration period mitigates litigation risk.
ipo前的信息披露和诉讼
我们考察了IPO注册披露是否会使公司面临更大的非股东诉讼风险。我们利用在联邦和州法院对IPO公司提起的诉讼的手工收集数据,发现向SEC公开提交IPO注册声明的公司在注册提交和发行日期之间的诉讼风险增加了16%。与公开提交注册文件导致诉讼风险增加的情况一致,根据《就业法案》以保密方式提交注册文件的公司不会经历这样的诉讼风险增加。保密文件的影响主要集中在企业发起的诉讼、知识产权/合同诉讼和可能没有法律依据的诉讼中。我们发现,保密申请人在IPO后提起的诉讼并没有不成比例的增加,这表明在IPO注册期间隐瞒信息可以降低诉讼风险。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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