The fiduciary duties of institutional investors in securities litigation

The Private Securities Litigation Reform Act of 1995 was enacted to expand the role of institutional investors in securities litigation in the hopes t hat such involvement would serve to moderate what were widely perceived as abusive litigation practices in this area. These institutional investors, h owever, must also observe their significant fiduciary, obligations under th e Employee Retirement Income Security Act. The Article discusses the redefi ned role of institutional investors in securities litigation in light of bo th of these pieces of legislation and examines some potential benefits and unique concerns that institutional investors must now consider when a secur ities fraud claim arises.