[finiteloop]

People file lawsuits when companies have filed for IPO because generally that leads to companies being in a "quiet period" in which they cannot effectively respond publicly, which increases the likelihood of settlement, etc. It is also extremely common for competitors to seed the press with negative story lines, taking advantage of the legally mandated quiet period to remove the filing company's ability to counter these stories.

[TallGuyShort]

My employer just went through IPO. I was really disappointed how within days of the public confirmation of the S-1, competitors were lying very openly and publicly about things they knew we couldn't refute well because of the quiet period.