Although some researchers have suggested that narcissistic CEOs may have a positive influence on organizational performance (e.g., Maccoby, 2007; Patel & Cooper, 2014), a growing body of evidence suggests that organizations led by narcissistic CEOs experience considerable downsides, including evidence of increased risk taking, overpaying for acquisitions, manipulating accounting data, and even fraud. In the current study we show that narcissistic CEO's subject their organizations to undue legal risk because they are overconfident about their ability to win and less sensitive to the costs to their organizations of such litigation. Using a sample of 32 firms, we find that those led by narcissistic CEOs are more likely to be involved in litigation and that these lawsuits are more protracted. In two follow-up experimental studies, we examine the mechanism underlying the relationship between narcissism and lawsuits and find that narcissists are less sensitive to objective assessments of risk when making decisions about whether to settle a lawsuit and less willing to take advice from experts. We discuss the implications of our research for advancing theories of narcissism and CEO influence on organizational performance. USA Today reported that Trump and his businesses have been the targets of at least 3500 actions in federal and state courts during the past 30 years. 1 If any single individual is to influence an organization, it is most likely to be the person in charge, or the CEO. One CEO attribute that appears to significantly influence organizational performance is the extent to which the leader is narcissistic, a collection of attributes related to overconfidence, feelings of personal superiority and entitlement, a desire for power and admiration, a willingness to manipulate others for personal gain, and hostility when challenged (e.g.,