The Private Securities Litigation Reform Act of 1995 instituted a system of proportionate liability under which defendants who are not found to have "knowingly committed a violation" of securities laws are liable based on the defendant's percentage of responsibility.

Question

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The Private Securities Litigation Reform Act of 1995 indeed introduced a system of proportionate liability, where defendants not found to have knowingly violated securities laws are liable only for their percentage of responsibility, rather than joint and several liability for all damages.

The Private Securities Litigation Reform Act of 1995 Instituted a System