Securities Private Enforcement Reform Act

Summary

Securities Private Enforcement Reform Act - Amends the Securities Exchange Act of 1934 to declare that a defendant may be liable jointly and severally for damages in an implied private action only if the trier of fact specifically determines that the defendant knowingly engaged in securities fraud. Sets forth a liability allocation scheme to determine the percentage of responsibility among the plaintiff, the defendants, and any other alleged contributors to the harm alleged if the trier of fact finds that a defendant did not engage in knowing securities fraud. Prescribes guidelines for the award of reasonable attorney's fees and related expenses incurred by the prevailing party in any implied private action. Declares that in any implied right of action that is certified as a plaintiff class action: (1) the share of any settlement or final judgment awarded to the representative plaintiff shall be calculated in the same manner as the share awarded to all other members of the plaintiff class; (2) the plaintiff class may not be represented by any attorney who owns or has a beneficial interest in the securities that are the subject of the litigation, or any attorney affiliated with him or her, or any attorney who is obligated to pay remuneration to a third party for assistance in obtaining the representation of any party to the action; and (3) funds disgorged as a result of Securities and Exchange Commission action shall not be distributed as payment for attorney's fees or expenses incurred by private parties seeking distribution of the disgorged funds.

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Documents

3 official files

• Introduced in House (text)

  Introduced in House · EN · 25 January 1995

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• Introduced in House (PDF)

  Introduced in House · EN · 25 January 1995

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• Introduced in House

  summary · EN · 25 January 1995

  Open at official source

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