Securities industry sees dramatic rise in legal risks
NEW YORK – Legal risks in the securities industry increased drastically in 2005 as a result of increased settlements, according to a securities litigation survey conducted by PricewaterhouseCoopers.
Issues include the risk of loss from failure to comply with laws, ethical standards, contractual obligations and exposure to litigation.
The dramatic increase has been attributed to the expansion of securities litigation to more third parties, including auditors, investment bankers, financial advisers and financial institutions.
"The 'lead plaintiff' provision given by the Private Securities Litigation Reform Act of 1995 (PSLRA) and the expansion of securities litigation cases to more third
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