Flying Lawyer
You are correct. However, it didn't start out that way in 1994. It started out as "Tort Reform", but ended as "Litigation Reform" and as applying only to security lawsuits. Beyond that, it had little if any effect on other non-security lawsuits, even if they were class action in nature.
DEFINITION of 'Private Securities Litigation Reform Act – PSLRA'
Legislation passed by Congress in 1995 to stem the filing of frivolous or unwarranted securities lawsuits. The PSLRA increased the amount of evidence plaintiffs were required to have before filing a securities fraud case with the federal courts. It also changed the way securities class action lawsuits were handled by giving judges the authority to determine plaintiffs and to take other actions to reduce legal system abuses. A shareholder may file a securities fraud claim in federal court to recover damages sustained as a result of the fraud. Before the PSLRA, plaintiffs could file a lawsuit simply because a stock price changed significantly and hope that the discovery process would reveal potential fraud. After the PSLRA, plaintiffs were required to bring forth particular fraudulent statements made by the defendant, to allege that the fraudulent statements were reckless or intentional and to prove that they suffered a financial loss as a result of the alleged fraud. It addresses the following provisions:
Safe Harbor for Forward-Looking Information
Limitations on Joint and Several Liability
Increased Pleading and Proof Requirements
Limitation on Damages
Class Action Procedural Reforms
Enhanced Attorney Sanction Provisions
RICO Amendment Eliminating Sanctions Claims
Auditor Duty Regarding Financial Fraud
Additional SEC Rulemaking Authority