Since virtually every securities class action settles after surviving a motion to dismiss, the riskof non-payment is presumably much lower for plaintiff attorneys and courts might consider lowering or eliminating the multiplier on billable hours the firms rack up after that.
Novy-Marx concludes with a thought experiment where he substitutes GASB accounting with an identical system where future liabilities are discounted at the muni rate (after all, the riskof non-payment to pensioners is no different, or in most case lower, than the risk to bondholders).