Under the PSLRA, a private plaintiff must allege with specificity under which sections?

The correct answer is that under the Private Securities Litigation Reform Act (PSLRA), a private plaintiff must allege with specificity under sections 10(b) and 10b-5. Section 10(b) of the Securities Exchange Act of 1934 prohibits use of any manipulative or deceptive device in connection with the purchase or sale of any security, while Rule 10b-5, promulgated under this section, further defines the fraudulent practices that relate to securities transactions.

To successfully bring a private securities fraud lawsuit, a plaintiff needs to demonstrate specific facts rather than merely general allegations. This requirement is intended to curb frivolous lawsuits and ensure that claims are based on substantial evidence. Thus, specificity in the allegations is crucial in establishing that misleading statements were made and that the plaintiff suffered losses as a result.

The other choices reference sections that are not applicable to the specific fraud allegations as outlined by the PSLRA. Sections 8(b) and 8b-6 do not pertain to the requirements under the PSLRA, nor do sections 12(b) and 12b-3, which concern registration requirements and do not deal directly with private fraud claims. Understanding the intent behind the PSLRA highlights the importance of specificity in securities fraud