The Private Securities Litigation Reform Act of 1995 applies the practice of ______.
A)Risk assessment
B)Fraud triangle
C)Lowballing
D)Proportionate liability

Question

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act of 1995 applies the practice of proportionate liability, which limits the liability of each defendant to the portion of the total damages that reflects the defendant's share of responsibility for the harm caused. This means that defendants will only be held accountable for damages that are directly proportional to their level of fault, rather than being held jointly and severally liable for the full amount of damages.

The Private Securities Litigation Reform Act of 1995 Applies the Practice