These law suits are not good. But they are a fact in small bios.
Usually the company will settle for the cost of the defense and just pay out. I have received a few pennies on companies I have owned in the past. My problem has always been that I trade these companies and usually, if I'm doing things right, have no real loss to claim.
I hate that these suits get filed, but it is a part of the investment business. The only ones that really make any money are the lawyers, and they usually take the lions share of the cash (30-40%).
If I had any real hope for these suits it is that they could go after the management directly, and claw back some of their earnings and options. They get paid no matter how the company does. It just confounds me that this is allowed to happen with so many companies.