We study the performance of dominant law firms (“stars”) in corporate litigation. We use directors’ and officers’ (D&O) insurance coverage as a benchmark for expected settlement amounts, to separate to what extent (a) stars reach more favorable settlements on any lawsuit or (b) stars pick lawsuits where a favorable settlement is ex ante more likely. Our findings indicate the latter, and that stars have an economically small impact on settlement amounts. This result is not explained by measurement error or over-insurance. The extent to which stars are associated with improvements in corporate governance also appears modest. Overall, our evidence suggests that star law firms are not more valuable to their clients than lesser-known firms.