Arbitration and Reform in Private Securities Litigation: Dealing with the Meritorious as Well as the Frivolous
88 Pages Posted: 4 Aug 2010
Date Written: April 1, 1999
The PSLRA protects securities fraud feasors by insulating them from traditional fraud liability without basis in policy or economics. Indeed, radical deregulation like this is economically risky, and a threat to the long term stability of American financial markets. Other alternatives, such as arbitration, could operate to preserve deterrence while diminishing the costs of securities litigation.
JEL Classification: D63, E44, G18
Suggested Citation: Suggested Citation