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.
PSLRA Claimants have a 60 day window to submit their claim loss for review. After 60 day time limit is done, the most adequate lead plaintiff is chosen. One who “has the largest financial interest in the relief sought by the class” and “otherwise satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure.”