3.10 Private Securities Litigation Reform Act of 1995

• Library: Corporations and Partnerships in Virginia (Virginia CLE) (2016 Ed.)

3.10 PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

The Private Securities Litigation Reform Act of 1995 (the Securities Litigation Reform Act) ³⁹⁸ imposes numerous procedural requirements on private litigants and the cases they bring for securities violations under both the Securities Act and the Exchange Act and increases the threat of sanctions where litigation is found to be frivolous. In addition, this Act creates a safe harbor for certain oral and written forward-looking statements by issuers subject to the reporting requirements of the Exchange Act. ³⁹⁹ In order to receive the benefit of these safe harbor provisions, forward-looking statements must be identified as such and must be accompanied by meaningful cautionary statements which...