Which of the following statements is true of the Private Securities Litigation Reform Act (PSLRA)?
A) It was enacted by the Congress to eliminate the fraud-on-the-market presumption.
B) It is used by the Congress to limit the amount of damages private plaintiffs can recover and restrict attorney fees.
C) It usually fails to give provisions for requirements for the appointment of lead plaintiffs in securities class-action cases.
D) It requires that private plaintiffs who suffered injury could maintain private causes of action against third parties not directly responsible for a securities law violation.
E) It mandated that the Federal Trade Commission could pursue claims against third parties that are indirectly responsible for a securities law violation.

Question

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act (PSLRA) made it clear that only the Securities and Exchange Commission (SEC) can pursue claims against third parties not directly responsible for the securities law violation. Congress, through the PSLRA, limits the amount of damages private plaintiffs can recover and restricts attorney fees. This law also provides requirements for the appointment of lead plaintiffs in securities class-action cases.

Which of the Following Statements Is True of the Private