Under the Securities Litigation Reform Act of 1995, companies face reduced liability for inaccurate statements predicting future corporate performance.

Question

Quizplus · Accepted Answer

The Securities Litigation Reform Act of 1995 does limit the liability of companies for certain forward-looking statements, as long as they can demonstrate that they had a "good-faith" belief in the accuracy of the statement and that it was based on reasonable assumptions at the time it was made. However, this limitation on liability is not absolute and companies can still be held liable for statements that are made with actual knowledge of their falsity or with reckless disregard for their truth.

Under the Securities Litigation Reform Act of 1995, Companies Face