Securities litigation reform
Article Abstract:
Attempts by the US Congress to address litigiousness in the securities industry in 1995 have focused on altering the scienter standard for securities fraud actions, adding procedural hurdles, and providing a safe harbor for disclosure of forward-looking information. The excess of securities litigation ultimately provides investors with recoupment of a small percentage of their losses, but it chills the willingness of companies to disclose information. The procedural hurdles are intended to promote consideration of the advisability of bringing suit.
Publication Name: Annual Institute on Securities Regulation
Subject: Law
ISSN: 0195-5756
Year: 1995
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Chestman revisited: the slow death of fraud
Article Abstract:
The insider trading conviction in US vs Chestman accelerated the trend away from common law principles of fraud and will increase the need for legislation to deal directly with insider trading. Chestman was convicted under SEC Rule 10b-5, referring to common fraud provisions in Section 10(b) of the 1934 Securities Exchange Act. However, the conviction was overturned and Chestman was instead found guilty of breaking SEC Rule 14e-3.
Publication Name: Annual Institute on Securities Regulation
Subject: Law
ISSN: 0195-5756
Year: 1992
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Corporate boards and securities litigation reform
Article Abstract:
Corporate directors should examine their obligations under the securities reforms brought about by the Private Securities Litigation Reform Act of 1995. Corporate boards should develop a disclosure regimen and decide whether to disclosure forward-looking information. They should look at how competitors are dealing with the act, their client relations, and plan for what they would do if investigated.
Publication Name: Annual Institute on Securities Regulation
Subject: Law
ISSN: 0195-5756
Year: 1996
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