In fact I was considering a position now - an arbitrage with IRR 20% 
I jst mentioned a possibility which led to selling in last 2-3 days.
Also the worry factors are always present - in fact, that risk is wat makes an investment worthy - The factors here are : -
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The base of Litigation is that a very low price is being paid for the acquisition, when in fact, the price being paid is high relative to the avg mkt price and valuation-wise as well. Yes, all the tech stocks are being valued high right now so the promoter might have initiated a sale, bt by any sensible yardstick $13 is also a high price
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Wat’s important to note is the legal accessibility available to investors in the U.S. ( wish the same wd have been the case in India
) Now once these 2-3 firms put up something like this, the one who isn’t interested initially vl also join. -
The litigation as you correctly mentioned, are common in U.S because they are mostly settled out-of-court wid money considerations. Hence, it might happen, that a part of deal money is used to pay and settle wid these law firms. This will reduce the per share amount value available to shareholders here to some extent.
All-in-all, the arb here is weighing the risk-reward in light of above facts.