Replies to post #454035 on Anavex Life Sciences Corp (AVXL)

[Investor2014]

Your assumption incorrect.

My assumption is that a law firm would not file a case without passing a stat sig analysis.

Most smaller firms don't have skilled analysts or the right tools and understanding to even think about an event study before filing a complaint. They simply look at the dollar drop and assume damages.

An outside expert is expensive and usually only employed once a law firm(s) wins lead plaintiff and need to file an amended and consolidated complaint.

I have seen many shots in dark that won't pass the defendant expert analysis or mine.

[Steady_T]

Frequently these lawsuits are filed and never intended to go to trial. The law firm wants to settle and collect a fee. The companies choose to settle because it is cheaper than going to court. It is a form of legal extortion. Some cases are obviously real, many others legal extortion.