Which of the following statements is true of the Private Securities Litigation Reform Act of 1995?
A) It made it easier for plaintiffs to bring class action securities lawsuits.
B) It replaces proportionate liability with joint and several liability.
C) It results in the accountant being the "deep pocket" defendant regardless of the accountant's degree of fault.
D) It allows joint and several liability to be imposed if the defendants acted knowingly.

Question

Quizplus · Accepted Answer

The Private Securities Litigation Reform Act of 1995 allows joint and several liability to be imposed if the defendants acted knowingly, which is different from the previous proportionate liability system. The act also includes provisions such as heightened pleading requirements for securities fraud complaints and a safe harbor provision for forward-looking statements made by companies. However, the act did not make it easier for plaintiffs to bring class action securities lawsuits and does not necessarily result in the accountant being the "deep pocket" defendant regardless of their degree of fault.

Which of the Following Statements Is True of the Private