[nineinchal]

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A small company that has a lot of its eggs in one basket is being severely distracted by a patent infringement lawsuit and goes on to win the case. Either as a plaintiff or defendant. Obviously the stock goes up when it wins. But in the two cases I have had positions in, Immersion (plaintiff) and even more so (so far) Shufflemaster (defendant), it continued to go up a lot more. Also when the loser is a small company (eg Mikohn) the opposite may be the case.

So i'm wondering if the simple technique of buying or shorting one of these companies after the verdict is in would have worked in the past as a general rule.

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There is no general rule. This is finance and investing. Read that Black Swan thing.