The Private Securities Litigation Reform Act allows shelters from private liability for issuers who: ______.

Question

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act provides a safe harbor for issuers who use forward-looking statements. This protects them from private liability if the statements are accompanied by meaningful cautionary statements and made in good faith. Option A is incorrect because clawback provisions do not provide a shield from private liability. Option B is incorrect because the act does require the issuance of a prospectus but it does not provide immunity from private lawsuits. Option C is incorrect because issuers who make fraudulent statements are not protected by the act.

The Private Securities Litigation Reform Act Allows Shelters from Private