Abstract
Parties entering into a partial settlement of a securities fraud class action typically seek, in connection with the court’s approval of the settlement, an order barring categories of claims made by or against the settling parties that relate to or arise out of the settled federal securities fraud claims. Before the passage of the Private Securities Litigation Reform Act of 1995 (PSLRA), courts grappled with the equity of orders extinguishing these third parties’ rights.
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