Which of the following is not part of the definition of proportionate liability adopted by the Private Securities Litigation Reform Act?
A)The total responsibility for loss is divided among all parties responsible for the loss.
B)Defendants who knowingly committed a violation of securities laws remain jointly and severally liable.
C)The full amount of damages may be recovered from any defendants involved in the action.
D)A solvent defendant's liability may be increased by 50 percent if other defendants are insolvent.

Question

Quizplus · Accepted Answer

The definition of proportionate liability adopted by the Private Securities Litigation Reform Act includes options A, B, and D, but not C. Proportionate liability means that the total responsibility for loss is divided among all parties responsible for the loss, and defendants who knowingly committed a violation of securities laws remain jointly and severally liable. However, the full amount of damages may not be recovered from any defendants involved in the action; rather, each defendant is only responsible for their proportionate share of the damages.

Which of the Following Is Not Part of the Definition