Securities litigation reform: The long and winding road to the Private Securities Litigation Reform Act of 1995

On December 22, 1995, the U.S. Senate voted to override President Clinton's veto of the Private Securities Litigation Reform Act of 1995, concluding the long and often rancorous legislative effort to bring about sweeping changes to private litigation under the federal securities laws. While the Act does not clearly achieve its goal of bringing meaningful reform to the system of private litigation, one thing seems clear-it will take many years of litigation to resolve the many uncertainties the Act creates. This Article reviews the issues underlying the litigation reform effort and the legislative process leading to the enactment of the bill. The Article also analyzes the various provisions of the Act and their apparent intent.