Which of the Following Was Not Provided by the Private

question 36

Multiple Choice

Which of the following was not provided by the Private Securities Litigation Reform Act of 1995?

• A) Requires plaintiffs to pay defendants reasonable attorney's fees and expenses directly related to litigation found by the court to be frivolous and unwarranted.
• B) Provides for a stay of discovery during the period a motion to dismiss is pending, thereby reducing a cost that often forces innocent parties to settle frivolous class action suits.
• C) Limits punitive damages by defining securities fraud as a basis for bringing action under the Racketeer Influenced and Corrupt Organization Act, which provides for treble damages.
• D) Places limits on the rights of third parties to sue by limiting the number of times a plaintiff can be a lead plaintiff to no more than five class actions in any three-year period and by imposing stricter pleading standards to be met by plaintiffs.
• E) Changes the manner in which the court appoints lead plaintiffs in class actions to favor institutional investors likely to have the largest financial stake in the relief sought and to mitigate the "race to the courthouse by professional plaintiffs" who hold minimal ownership interests.

---

Definitions:

Performance Appraisal

A systematic evaluation process in which the work performance of an employee is assessed and documented, often influencing decisions on promotions, pay raises, and training needs.

Rank Ordering

The process of arranging items or individuals in a sequence based on their relative importance or value.

Recency Bias

is the tendency to weigh recent events more heavily than older ones when making decisions or evaluations.

Individual's Performance

The level of productivity and efficiency demonstrated by an individual in executing their tasks or responsibilities.