Class actions curtailed; but the Senate's version of securities bill has a more moderate 'safe harbor.'

Article Abstract:

The US Senate's passage of S 240 on June 28, 1995, has virtually guaranteed changes later this year in the laws governing class-action lawsuits over securities. Most observers say the Senate measure is more moderate than the House's, and that a compromise between the two should be veto-proof. The House bill would immunize companies for 'forward-looking' projections, while the Senate one permits suits when projections show actual intent to defraud. Dispirited securities lawyers predict small investors will suffer most from the change.

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House, Senate reach pact on securities bill

Article Abstract:

Republicans in the US House and Senate have agreed to compromises on reform bills affecting class actions by investors, possibly restoring a point earlier yielded by House bill sponsor Christopher Cox. A House-Senate conference committee will consider a bill dominated by the Senate version of a measure initially drafted as part of the 10-point Contract With America. A provision limiting liability to cases of intentional fraud, but not reckless conduct contributing to fraud, was dropped but may be restored.

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Whose history is to be guide? Critics say securities bill background is skewed

Article Abstract:

Some experts fear the so-called Statement of Managers in legislation Congress passed recently, over President Clinton's veto, may curtail judges' freedom to interpret and apply the law. The legislation restricts securities class actions, and the Statement, a portion of the legislative history, contains two troubling sections. One raises the pleading standards for investor class actions; the other establishes a safe harbor for companies that offer forward-looking performance projections.

Cases, Securities, Securities fraud

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