"[2] The Private Securities Litigation Reform Act (PSLRA) of 1995 encouraged institutional investors to participate as lead plaintiffs in securities class actions "to shift the balance of power between shareholders and class action lawyers by allowing investors with the most substantial losses to take control over" the case.
[4] Since the passage of the PSLRA, institutional investors rely on portfolio monitoring services offered by plaintiff class action law firms to identify "loss recovery opportunities.
"[8] To have "standing" to sue under Section 11 of the 1933 Act in a class action, a plaintiff must be able to prove that he can "trace" his shares to the registration statement in question, as to which there is alleged a material misstatement or omission.
"[16] Cyan also contributed to rising costs in executive liability insurance for directors and officers of publicly traded companies due to soaring exposures.
[24] Event study analysis is the court-accepted methodology for evaluating the degree of informational efficiency during an alleged Class Period.
[25] The ease to prove damages, and thus the ability to garner and drive large settlements, may be tempered by the Halliburton Supreme Court case which allows direct evidence to counter efficient market or Fraud-on-the-market theory.
[27] Evidence that proves that an absence of stock price impact exists may prevent class certification by rebutting Basic's presumption of reliance.