The Federal Litigation Reform Act of 1995 replaced the previous proportionate liability requirement with joint and several liability for damages suffered by third parties who rely on the financial statement of firms attested to by CPAs.

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The Private Securities Litigation Reform Act of 1995 actually aimed to limit securities fraud lawsuits against issuers and to implement several significant changes to the securities laws, including provisions affecting the liability of auditors in certain circumstances, but it did not replace a proportionate liability requirement with joint and several liability for the specific scenario described.

The Federal Litigation Reform Act of 1995 Replaced the Previous