A Middle Course On PSLRA Contribution Bar Orders

Law360, New York (November 17, 2008, 12:00 AM EST) -- The Private Securities Litigation Reform Act of 1995 (PSLRA) bars contribution claims among defendants following a settlement, except in limited circumstances.

Significantly, the statute bars such claims not only in cases of partial settlement – where a plaintiff settles with only some defendants – but also in cases where the plaintiff settles with all defendants.

In the partial settlement context, the PSLRA bars contribution claims by non-settlors against settlors, and compensates the non-settlors by giving them a judgment credit – a setoff corresponding to the settlor’s...
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