Private Securities Litigation
Is there any law applicable in the economic territory of India, for Indian businesses, that serves the same purpose as the US Private Securities Litigation Act of 1995?
Basically, this act protects businesses from coming under direct fire from a plaintiff. It limits frivolous securities lawsuits. Prior to this act, a plaintiff could proceed with minimal evidence of fraud and then use pretrial discovery to seek further proof. This set a very low barrier to initiate litigation, which encouraged the filing of weak or entirely frivolous suits. Defending against these suits could prove extremely costly, even when the charges were unfounded, so defendants often found it cheaper to settle than fight and win.
So is there any Indian law that protects me as a business owner from such problems? I need protection as I am setting up a business in the web analytics industry, and need to rely on forecasting business performance to plan a client's marketing. Forecasting is done with careful metrics analysis, but market conditions can turn around any time. So I only want to make forward looking forecasts as "expectations" rather than 100% concrete statements.