The purpose of this note is to evaluate the ramifications of this particular proposed amendment to the 1934 Act. Part II will summarize the current status of the proposed bill and its provisions. Part I will briefly survey the history and requirements of the private cause of action under Rule 10b-5, particularly the scienter requirement because of its impact on the understanding of the proposed reform. Finally, Part l will address the justifications for the proposed reform, and the effects the reform will have on 10b-5 litigation.
Note, The Proposed Securities Private Enforcement Reform Act: The Introduction of Proportionate Liability into Rule 10b-5 Litigation, 42 Clev. St. L. Rev. 339 (1994)