Paul Wolfla Comments on Security Fraud Cases with Indiana Lawyer

In an interview with Indiana Lawyer, Paul Wolfla discussed securities fraud cases and the Private Securities Litigation Reform Act of 1995 (PSLRA), the federal law designed to stem what are believed to be unwarranted securities lawsuits. Wolfla noted that the idea behind the PSLRA provision "was the concern Congress had about the number of ‘strike suits' which lawyers file immediately after a company announces bad news then look for a reason later."

He also speculated the downward trend in certain types of securities fraud cases may be a reflection of public companies becoming better disciplined about disclosing material to shareholders. "In being more disciplined," Wolfla said, "companies are giving more thought and care, in particular about financial performance. The result is this makes it more difficult for shareholders to allege fraud has been committed on the basis that material information has been omitted."