Securities law a mixed bag; experts predict reform will reduce some lawsuits, boost offers.

Business Insurance, January, 1996 by Zolkos, Rodd

The Securities Litigation Reform Act that became law over President Clinton's veto last month may well prove a mixed blessing for business, resulting in fewer but more costly class-action securities suits. Meanwhile, uncertainty over the new law's ultimate impact, coupled with an already competitive directors and officers liability insurance market, should prevent any significant changes in D&O rates for the immediate future.

Among the ways the act aims to protect companies and their officers from frivolous lawsuits are: * Providing certain protections from lawsuits over company statements. * Establishing a procedure for choosing "lead plaintiffs" in suits. * Limiting attorneys' fees. * Delaying discovery proceedings until after motions to dismiss a suit are...

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