Kerry unfairly maligned on PSLRA

An article in New Republic Online blasts the Massachusetts senator for having supported the lawsuit-limiting Private Securities Litigation Reform Act of 1995 (as did two-thirds of Kerry’s Senate colleagues, including even Ted Kennedy as well as nearly all the Republicans). Supposedly the PSLRA’s provisions, such as those requiring that charges of fraud be pleaded with […]

An article in New Republic Online blasts the Massachusetts senator for having supported the lawsuit-limiting Private Securities Litigation Reform Act of 1995 (as did two-thirds of Kerry’s Senate colleagues, including even Ted Kennedy as well as nearly all the Republicans). Supposedly the PSLRA’s provisions, such as those requiring that charges of fraud be pleaded with particularity, encouraged misconduct like that later uncovered at Enron and WorldCom. (Jonathan Cohn, “Matter of Interest”, New Republic Online, Jan. 23). Mickey Kaus (scroll down) passes along the charges at face value, but Professor Bainbridge is fortunately on the case with a good response (Jan. 25).

Comments are closed.