November 2017 Bar Bulletin
By Joseph E. Bringman
A July decision by the Ninth Circuit, In re Quality Systems, Inc. Securities Litigation,1 raises important questions as to when a public company’s allegedly false or misleading public statement is forward-looking, and therefore potentially exempted as a basis for liability under the federal securities laws by the safe-harbor provision of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”).2
Unless a statement is subject to a specified exception,3 the PSLRA’s safe harbor precludes civil liability with respect to forward-looking statements in two instances. First, the safe harbor protects the maker of a false...