Private Securities Litigation Reform Act Law and Legal Definition
Private Securities Litigation Reform Act (PSLRA) is a statute passed by Congress in 1995 to stop the filing of frivolous or unwarranted securities lawsuits. The PSLRA increased the amount of evidence plaintiffs were required to have before filing a securities fraud case with the federal courts.
“The Private Securities Litigation Reform Act, 15 USCS § 78u-4 et seq., establishes the procedure for appointment of a lead plaintiff in each private action arising under the Securities Exchange Act of 1934 that is brought as a plaintiff class action pursuant to the Federal Rules of Civil Procedure.” [Taubenfeld v. Career Educ. Corp., 2004 U.S. Dist. LEXIS 4363 (N.D. Ill. Mar. 19, 2004)].