The Private Securities Litigation Reform Act of 1995 (PSLRA) is a legislation enacted by the United States Congress to reform the way securities class action lawsuits are handled. The act aims to strike a balance between protecting investors and preventing frivolous lawsuits that could harm businesses and the economy. The PSLRA introduced several important provisions to enhance the transparency and fairness of securities litigation. One key provision is the requirement for plaintiffs to provide detailed and specific facts supporting their claims, ensuring that lawsuits are based on credible evidence. Additionally, the act imposes limitations on the liability of certain defendants and establishes a stay of discovery during the early stages of a lawsuit to prevent excessive costs and burdens on defendants. Overall, the Private Securities Litigation Reform Act of 1995 has had a significant impact on securities litigation in the United States, promoting greater accountability and efficiency in the legal process.