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Private Securities Litigation Reform Act: A Post-Enron Analysis

In the aftermath of the collapse of Enron, Congress is considering various proposals that purportedly would protect investors against securities fraud. Some seek to enhance the power of the Securities and Exchange Commission (SEC) to enforce the securities laws, a workable step if accompanied by a corresponding increase in the SEC’s budget. Other proposals, however, would empower the plaintiffs’ bar to file more lawsuits against issuers, directors and officers, underwriters, and auditors in a wider range of circumstances.