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Securities Fraud Damages Under The Pslra, Mohammed A. Misbah

Mohammed A Misbah

The United States Private Securities Litigation Reform Act ("PSLRA") implemented several substantive changes affecting certain cases brought under the federal securities laws. It was designed to reduce the number of “frivolous” securities lawsuits filed in federal courts. Prior to the PSLRA, a securities fraud case could proceed with minimal evidence and use pre-trial discovery to search for more evidence that strongly suggested a deliberate fraud. Under the PSLRA plaintiffs need such evidence simply in order to commence an action. This article seeks to explain what evidence is required of a plaintiff in a security fraud case, in order to defeat …