Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Temple-Inland (NYSE: TIN) plunged 20% Tuesday after the paper company announced that it's being sued over its role in a failed bank it once owned, Guaranty Financial.

So what: While the lawsuit itself -- Temple is being accused of stuffing Guaranty with toxic assets before spinning it off -- doesn't seem to have a whole lot of merit, Mr. Market is probably more concerned about its possible side effects. Specifically, investors are worried that International Paper (NYSE: IP) will take its standing $30.60 buyout offer off the table simply because of potential legal liability.

Now what: I wouldn't be so quick to pounce on this plunge. A Temple takeover was already somewhat of a long shot, thanks to the poison pill it has in place, and today's news just makes those odds even slimmer. Without the delicious chances of a possible buyout, Temple's heavy debt load, slim margins, and highly volatile stock price don't seem worth being exposed to.

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