The share price fell, so lawyers race to the courthouse to file a class action suit, because there is a first-to-file doctrine for these types of cases.

Then they don't necessarily try and prove harm, they just want to settle & get paid for their own inflated costs.

Meanwhile, the people that they are supposedly representing, ie shareholders at the time of the fall, are overwhelimingly still shareholders. So any payout they get is from their own proportion of money they already own in the company, minus legal fees.

It does however screw foreign holders and a few other classes of shareholders, to the benefit of the lawyers, and to lower the loss the shareholders take by getting their own money back.