Stay of Discovery
To prevent discovery until a court has deemed a securities fraud complaint sufficient, the PSLRA also imposes a stay of all discovery "during the pendency of any motion to dismiss." This stay operates against all parties, including both plaintiffs and defendants.
The Securities Litigation Uniform Standards Act amends this provision to allow a federal court to impose the discovery stay on related securities suits in state court.
Read more about this topic: Private Securities Litigation Reform Act
Famous quotes containing the words stay and/or discovery:
“A white-washed crow won’t stay white for long.”
—Chinese proverb.
“The virtues of society are vices of the saint. The terror of reform is the discovery that we must cast away our virtues, or what we have always esteemed such, into the same pit that has consumed our grosser vices.”
—Ralph Waldo Emerson (1803–1882)