Since its enactment in 1995, the Private Securities Litigation Reform Act (PSLRA) has received extensive attention. Both courts and securities litigation practitioners are well versed in the PSLRA’s frequently litigated provisions such as the heightened pleading standards and in its mandatory stay of discovery. Other provisions get far less attention and, relatively speaking, are infrequently litigated, such as Section 78u-4(c). In 2010 and 2011, despite numerous decisions adjudicating securities fraud actions, only a handful of cases even mentioned Section 78u-4(c), much less substantively addressed it.
In this article published in Law360, Squire Sanders Securities Litigation Practice members Joseph C. Weinstein and Joseph P. Rodgers examine Section 78u-4(c)’s requirement that courts conduct a Rule 11 inquiry at the end of litigation. Their discussion addresses the breadth and reach of Section 78u-4(c).