Litigation for stockholders losses


Is it normal for small and medium sized companies to get litigation when their stock prices reach astounding ATHs and sometimes reach new lows in the months and years after?

It seems that anything that had a great rally in late 2020 or early 2021 is getting calls for litigation from various law firms that specialize in this kind of thing. I have at least 3 stocks that have this and they are otherwise honest businesses that get awards for things like environmental sustainability and employee satisfaction. Nothing is likely to come of this and even if it does it will be a minor fine at best. These companies are nothing like NKLA and the deceptions and tricks they performed.

For those who study many stocks, is this common?


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