settlement pressure.pdfVIP

International Review of Law and Economics 25 (2005) 264–275 Settlement Pressure J.B. Heaton ∗ Bartlit Beck Herman Palenchar Scott LLP, 54 West Hubbard Street, Chicago, IL 60610, USA Abstract This paper cautions against extrapolation of traditional economic analysis of litigation to the prob- lem of settlement pressure in high-stakes class action litigation. Existing economic models can explain the existence of settlement pressure by relying on notions of defendant risk