PSLRA

The PSLRA (Private Securities Litigation Reform Act) is a law enacted in 1995 to improve the quality of securities fraud lawsuits. It aims to prevent frivolous or overly aggressive lawsuits by setting strict rules for plaintiffs, including requiring them to specify each misleading statement they're suing over and providing courts with tools to dismiss weak cases early. The law also added a "safe harbor" protecting companies from liability for forward-looking statements if they include appropriate warnings. Overall, PSLRA seeks to balance protecting investors with reducing harmful baseless litigation.