Securities Litigation under the Private Securities Litigation Reform Act (PSLRA)

Summary

This practice note provides an overview of the key provisions of the Private Securities Litigation Reform Act of 1995 (PSLRA) 104 P.L. 67 and examines practical considerations at various stages of a typical securities class action under the PSLRA. Congress enacted the PSLRA to deter so-called professional plaintiffs from bringing frivolous securities lawsuits in the hopes of extracting quick settlements from companies who did not want to bear the costs of litigation. The PSLRA implemented a number of protections designed to curb these abusive securities claims.