Emerging Issues In Securities Litigation: Removal of Class Actions Filed in State Court Alleging Federal Securities Violations
23 May 2008
Mayer Brown Article
May 2008 - In recent years, congress has passed legislation designed to bring the bulk of securities class actions back to federal court. After the passage of the Private Securities Litigation Reform Act (PSLRA) in 1995, plaintiffs sought refuge from the new law's more onerous provisions--such as limitations on damages and attorneys' fees, heightened pleading standards, and an automatic stay of discovery--by styling their claims as state-law fraud claims and bring them in state court, thereby avoiding PSLRA's strictures.