Private Securities Litigation Reform Act of 1995

Summary

Securities Litigation Reform Act - Amends the Securities Exchange Act of 1934, with respect to class actions, to require a court-appointed class action steering committee, composed of class members, to direct counsel for the plaintiff class (plaintiff steering committee). (Sec. 2) Prohibits the use of disgorgement funds resulting from actions brought by the Securities Exchange Commission (the Commission) to pay legal expenses incurred by private parties seeking distribution of such funds. (Sec. 3) Declares that the portion of any final judgment or settlement awarded to class plaintiffs serving as the representative parties shall be equal (on a per share basis) to the portion of the final judgment awarded to all other members of the class. Revises the guidelines for private class action suits to: (1) restrict to five the number of class actions filed by a named plaintiff during any three-year period; (2) subject a losing party litigant, if certain conditions apply, to liability for the prevailing party's legal fees; and (3) require the court to make a conflict of interest determination with respect to a plaintiff's counsel who directly owns or has a beneficial interest in the securities that are the subject of the litigation. Requires a court to require just and equitable security for the payment of awardable fees and expenses from the attorney for the plaintiff class, the plaintiff class, or both. Sets forth disclosure guidelines for any proposed settlement agreement that is disseminated to the plaintiff class, including: (1) a statement about agreement or disagreement on the amount of recoverable damages per share and the likelihood of the plaintiff's prevailing; (2) the amount of legal costs and fees sought as part of the settlement; and (3) the identification of lawyers' representatives who will be available to answer questions from class members. Revises the guidelines for private class action suits to: (1) mandate discharge of a defendant who settles before verdict or judgment from all claims for contribution by nonsettling persons; (2) provide for recovery of contribution by a person who becomes liable for damages from certain non-parties who would have been liable for the same damages, if joined in the original suit; and (3) grant defendants the right to submit to the jury written interrogatories on the issue of each defendant's state of mind (scienter) at the time the alleged violation occurred. Prohibits brokers or dealers from soliciting or accepting referral fees for assisting an attorney in obtaining the representation of a customer in any private action. (Sec. 4) Delineates the requirements for securities fraud actions, including: (1) explicit pleading and proof of scienter; (2) plaintiff's reliance on a material misstatement or omission that proximately caused the plaintiff's loss; and (3) limitations on damages. (Sec. 5) Defines the circumstances ("safe harbor") in which a person shall not be held liable for the publication of predictive statements in any action based on a fraudulent statement under this Act. Permits the defendant in such action to move for an automatic protective order to restrict all discovery to the specific issue of the applicability of the "safe harbor." Directs the Commission to adopt a regulatory framework to implement the "safe harbor" requirements of this Act with respect to predictive statements concerning the future economic performance of an issuer of securities.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 27 February 1995

   Introduced

   Referred to the Committee on Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

   Source: IntroReferral

2. 27 February 1995

   Introduced

   Referred to the Committee on Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

   Source: IntroReferral

3. 27 February 1995

   Introduced

   Introduced in House

   Source: IntroReferral

4. 27 February 1995

   Introduced

   Introduced in House

   Source: IntroReferral

5. 3 March 1995

   Reported

   Rules Committee Resolution H. Res. 103 Reported to House. Rule provides for consideration of H.R. 1058 with 1 hour of general debate. Previous question shall be considered as ordered except motion to recommit. Measure will be considered read. Bill is open to amendments. It shall be in order to consider the amendment printed in the reort of the Committee on Rules accompanying this resolution, if offered in the manner specified. All points of order against the amendment for failure to comply with clause 7 of rule XVI shall be waived. The bill shall be considered for amendment under the 5-minute rule, not to exceed 8 hours. The Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the amendment to be offered was printed in the Congressional Record.

   Source: Floor

6. 6 March 1995

   Reported

   Rules Committee Resolution H. Res. 105 Reported to House. Rule provides for consideration of H.R. 1058 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be considered read. Bill is open to amendments. the bill shall be considered for amendment under the 5-minute rule, not to exceed 8 hours. The Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the amendment to be offered was printed in the Congressional Record. Upon passage H. Res. 103 is laid on the table.

   Source: Floor

7. 7 March 1995

   Floor

   Committee of the Whole House on the state of the Union rises leaving H.R. 1058 as unfinished business.

   Source: Floor

8. 7 March 1995

   Floor

   Rule provides for consideration of H.R. 1058 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be considered read. Bill is open to amendments. the bill shall be considered for amendment under the 5-minute rule, not to exceed 8 hours. The Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the amendment to be offered was printed in the Congressional Record. Upon passage H. Res. 103 is laid on the table.

   Source: Floor

9. 7 March 1995

   Floor

   The Speaker designated the Honorable Larry Combest to act as Chairman of the Committee.

   Source: Floor

10. 7 March 1995

    Floor

    House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 105 and Rule XXIII.

    Source: Floor

11. 7 March 1995

    Floor

    Considered under the provisions of rule H. Res. 105. (consideration: CR H2760-2779)

    Source: Floor

12. 7 March 1995

    Passed

    Rule H. Res. 105 passed House.

    Source: Floor

13. 8 March 1995

    Floor

    The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 1058.

    Source: Floor

14. 8 March 1995

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: Floor

15. 8 March 1995

    Vote

    On passage Passed by recorded vote: 325 - 99, 1 Present (Roll no. 216).

    Source: Floor

16. 8 March 1995

    Vote

    Passed/agreed to in House: On passage Passed by recorded vote: 325 - 99, 1 Present (Roll no. 216).

    Source: Floor

17. 8 March 1995

    Vote

    On motion to recommit with instructions Failed by recorded vote: 172 - 251, 1 Present (Roll no. 215). (consideration: CR H2863)

    Source: Floor

18. 8 March 1995

    Floor

    The previous question on the motion to recommit with instructions was ordered without objection.

    Source: Floor

19. 8 March 1995

    Floor

    DEBATE - The House proceeded with ten minutes of debate on the motion to recommit the bill to the Committee on Commerce with instructions that the Committee report the bill back to the House forthwith with the Manton and Dingell amendments included in the bill.

    Source: Floor

20. 8 March 1995

    Floor

    Mr. Markey moved to recommit with instructions to Commerce.

    Source: Floor

21. 8 March 1995

    Passed

    The House adopted the amendments en gross as agreed to by the Committee of the Whole House on the state of the Union.

    Source: Floor

22. 8 March 1995

    Floor

    The previous question was ordered pursuant to the rule.

    Source: Floor

23. 8 March 1995

    Floor

    The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1058.

    Source: Floor

24. 8 March 1995

    Floor

    The House resolved into Committee of the Whole House on the state of the Union for further consideration.

    Source: Floor

25. 8 March 1995

    Floor

    Considered as unfinished business. (consideration: CR H2818-2864)

    Source: Floor

26. 10 March 1995

    Introduced

    Received in the Senate and read twice and referred to the Committee on Banking.

    Source: IntroReferral

27. 22 March 1995

    Committee

    Subcommittee on Securities. Hearings held.

    Source: Committee

28. 6 April 1995

    Committee

    Subcommittee on Securities. Hearings held.

    Source: Committee

29. 28 June 1995

    Floor

    Measure laid before Senate by unanimous consent. (consideration: CR S9209-9226)

    Source: Floor

30. 28 June 1995

    Vote

    Passed/agreed to in Senate: Passed Senate in lieu of S. 240 with an amendment and an amendment to the Title by Yea-Nay Vote. 69-30. Record Vote No: 295.

    Source: Floor

31. 28 June 1995

    Discharge

    Senate Committee on Banking discharged by Unanimous Consent.

    Source: Discharge

32. 28 June 1995

    Committee

    Senate Committee on Banking discharged by Unanimous Consent.

    Source: Committee

33. 29 June 1995

    Floor

    Message on Senate action sent to the House.

    Source: Floor

34. 24 October 1995

    ResolvingDifferences

    The Speaker appointed conferees - from the Committee on Commerce for consideration of the House bill, and the Senate amendment, and modifications committed to conference: Bliley, Tauzin, Fields (TX), Cox, White, Dingell, Markey, Bryant (TX), and Eshoo.

    Source: ResolvingDifferences

35. 24 October 1995

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: ResolvingDifferences

36. 24 October 1995

    Passed

    On motion that the House disagree to the Senate amendments, and request a conference Agreed to without objection. (consideration: CR H10690)

    Source: ResolvingDifferences

37. 24 October 1995

    ResolvingDifferences

    Mr. Bliley asked unanimous consent that the House disagree to the Senate amendments, and request a conference.

    Source: ResolvingDifferences

38. 25 October 1995

    Floor

    Message on House action received in Senate and at the desk: House requests a conference.

    Source: Floor

39. 17 November 1995

    ResolvingDifferences

    Senate insists on its amendments agrees to request for a conference, appoints conferees D'Amato; Gramm; Bennett; Grams; Domenici; Sarbanes; Dodd; Kerry; Bryan. (consideration: CR S17361-17362)

    Source: ResolvingDifferences

40. 18 November 1995

    Floor

    Message on Senate action sent to the House.

    Source: Floor

41. 28 November 1995

    ResolvingDifferences

    Conference report H. Rept. 104-369 filed. (text of conference report: CR H13692-13699)

    Source: ResolvingDifferences

42. 28 November 1995

    ResolvingDifferences

    Conference report filed: Conference report H. Rept. 104-369 filed.(text of conference report: CR H13692-13699)

    Source: ResolvingDifferences

43. 28 November 1995

    Passed

    Conferees agreed to file conference report.

    Source: ResolvingDifferences

44. 28 November 1995

    Passed

    Conference committee actions: Conferees agreed to file conference report.

    Source: ResolvingDifferences

45. 29 November 1995

    ResolvingDifferences

    Conference papers: Senate report and managers' statement held at the desk in Senate.

    Source: ResolvingDifferences

46. 5 December 1995

    ResolvingDifferences

    Conference report considered in Senate. By Unanimous Consent.

    Source: ResolvingDifferences

47. 5 December 1995

    Reported

    Rules Committee Resolution H. Res. 290 Reported to House. Rule provides for consideration of the conference report to H.R. 1058. Waiving all points of ordder against the conference report and against its consideration.

    Source: Floor

48. 5 December 1995

    Vote

    Conference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 65-30. Record Vote No: 589.(consideration: CR S17997)

    Source: ResolvingDifferences

49. 6 December 1995

    Vote

    On agreeing to the conference report Agreed to by the Yeas and Nays: 320 - 102, 1 Present (Roll no. 839). (consideration: CR H14039-14055)

    Source: ResolvingDifferences

50. 6 December 1995

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: ResolvingDifferences

51. 6 December 1995

    Vote

    Conference report agreed to in House: On agreeing to the conference report Agreed to by the Yeas and Nays: 320 - 102, 1 Present (Roll no. 839).(consideration: CR H14039-14055)

    Source: ResolvingDifferences

52. 6 December 1995

    ResolvingDifferences

    The previous question was ordered without objection.

    Source: ResolvingDifferences

53. 6 December 1995

    Floor

    DEBATE - The House proceeded with one hour of debate on the conference report.

    Source: Floor

54. 6 December 1995

    ResolvingDifferences

    Mr. Bliley brought up conference report H. Rept. 104-369 for consideration as a privileged matter.

    Source: ResolvingDifferences

55. 6 December 1995

    Passed

    Rule H. Res. 290 passed House.

    Source: Floor

56. 6 December 1995

    Floor

    Message on Senate action sent to the House.

    Source: Floor

57. 7 December 1995

    Floor

    Presented to President.

    Source: Floor

58. 7 December 1995

    President

    Presented to President.

    Source: President

59. 19 December 1995

    President

    Vetoed by President. (consideration: CR 12/20/95 H15214-15215)

    Source: President

60. 19 December 1995

    President

    Vetoed by President.(consideration: CR 12/20/95 H15214-15215)

    Source: President

61. 19 December 1995

    Passed

    Mr. Thomas asked unanimous consent That if the Chair lays before the House a veto message from the President on the bill H.R. 1058 today--that the objections of the President be spread at large upon the Journal and that the message and bill be ordered printed as a House Document; and that consideration of the veto message be postponed until Wednesday, December 20, 1995. Agreed to without objection.

    Source: Floor

62. 19 December 1995

    Passed

    Mr. Thomas asked unanimous consent that if the Chair lays before the House a veto message from the President on the bill today, that the message of the President be spread at large upon the pages of the Journal; that the message and accompanying papers be printed as a House Document; and that further consideration of the veto message be postponed until Wednesday, December 20, 1995. Agreed to without objection.

    Source: Floor

63. 20 December 1995

    Vote

    Two-thirds of the Members present having voted in the affirmative the bill is passed, the objections of the President to the contrary notwithstanding. Passed by the Yeas and Nays (2/3 required): 319 - 100, 1 Present (Roll No. 870). (consideration: CR H15215-15224)

    Source: Veto

64. 20 December 1995

    Vote

    Passed House over veto: Two-thirds of the Members present having voted in the affirmative the bill is passed, the objections of the President to the contrary notwithstanding. Passed by the Yeas and Nays (2/3 required): 319 - 100, 1 Present (Roll No. 870).(consideration: CR H15215-15224)

    Source: Veto

65. 20 December 1995

    Floor

    DEBATE - The House proceeded with one hour of debate on question of passage of the bill, the objections of the President to the contrary notwithstanding.

    Source: Floor

66. 20 December 1995

    Veto

    The Chair announced that the message of the President would be spread at large upon the pages of the Journal and that the veto message and the bill be printed as a House Document

    Source: Veto

67. 20 December 1995

    Veto

    The Chair laid before the House the veto message from the President.

    Source: Veto

68. 21 December 1995

    Veto

    Veto message received in Senate. Held at the desk.

    Source: Veto

69. 22 December 1995

    Vote

    Passed Senate over veto by Yea-Nay Vote. 68-30. Record Vote No: 612. (consideration: CR S19180)

    Source: Veto

70. 22 December 1995

    Became law

    Became Public Law No: 104-67.

    Source: President

71. 22 December 1995

    Became law

    Became Public Law No: 104-67.

    Source: BecameLaw

72. 22 December 1995

    Floor

    Veto message considered by Senate by Unanimous Consent. (consideration: CR S19146-19154)

    Source: Floor

73. 22 December 1995

    Vote

    Passed Senate over veto: Passed Senate over veto by Yea-Nay Vote. 68-30. Record Vote No: 612.(consideration: CR S19180)

    Source: Veto

Votes

Versions

• Enrolled Bill · undated · Official file
• Public Law · 23 December 1995 · Official file
• Engrossed Amendment Senate · 28 June 1995 · Official file
• Referred in Senate · 10 March 1995 · Official file
• Engrossed in House · 8 March 1995 · Official file
• Introduced in House · 27 February 1995 · Official file

Documents

16 official files

• Enrolled Bill (text)

  Enrolled Bill · EN

  ViewDownloadOpen at official source

• Enrolled Bill (PDF)

  Enrolled Bill · EN

  ViewDownloadOpen at official source

• Public Law (text)

  Public Law · EN · 23 December 1995

  ViewDownloadOpen at official source

• Public Law (PDF)

  Public Law · EN · 23 December 1995

  ViewDownloadOpen at official source

• Conference report filed in House

  summary · EN · 28 November 1995

  Open at official source

• Engrossed Amendment Senate (text)

  Engrossed Amendment Senate · EN · 28 June 1995

  ViewDownloadOpen at official source

• Engrossed Amendment Senate (PDF)

  Engrossed Amendment Senate · EN · 28 June 1995

  ViewDownloadOpen at official source

• Passed Senate amended

  summary · EN · 28 June 1995

  Open at official source

• Referred in Senate (text)

  Referred in Senate · EN · 10 March 1995

  ViewDownloadOpen at official source

• Referred in Senate (PDF)

  Referred in Senate · EN · 10 March 1995

  ViewDownloadOpen at official source

• Engrossed in House (text)

  Engrossed in House · EN · 8 March 1995

  ViewDownloadOpen at official source

• Engrossed in House (PDF)

  Engrossed in House · EN · 8 March 1995

  ViewDownloadOpen at official source

• Passed House amended

  summary · EN · 8 March 1995

  Open at official source

• Introduced in House (text)

  Introduced in House · EN · 27 February 1995

  ViewDownloadOpen at official source

• Introduced in House (PDF)

  Introduced in House · EN · 27 February 1995

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 27 February 1995

  Open at official source

Sponsors

• Rep. Bliley, Tom [R-VA-3] · R · Sponsor
• Rep. Fields, Jack [R-TX-8] · R · Sponsor
• Rep. Cox, Christopher [R-CA-40] · R · Sponsor
• Rep. Tauzin, W. J. (Billy) [D-LA-3] · R · Sponsor
• Rep. Moorhead, Carlos J. [R-CA-22] · R · Cosponsor
• Rep. Oxley, Michael G. [R-OH-4] · R · Cosponsor
• Rep. Bilirakis, Michael [R-FL-9] · R · Cosponsor
• Rep. Schaefer, Dan [R-CO-6] · R · Cosponsor
• JOE BARTON · R · Cosponsor
• Rep. Hastert, J. Dennis [R-IL-14] · R · Cosponsor
• Rep. Stearns, Cliff [R-FL-6] · R · Cosponsor
• Rep. Paxon, Bill [R-NY-31] · R · Cosponsor
• Rep. Gillmor, Paul E. [R-OH-5] · R · Cosponsor
• Mike Crapo · R · Cosponsor
• Rep. Bilbray, Brian P. [R-CA-50] · R · Cosponsor
• Rep. Ganske, Greg [R-IA-4] · R · Cosponsor
• Rep. Norwood, Charles W. [R-GA-10] · R · Cosponsor
• Rep. White, Rick [R-WA-1] · R · Cosponsor
• Rep. Edwards, Chet [D-TX-17] · D · Cosponsor
• Rep. Barcia, James A. [D-MI-5] · D · Cosponsor
• Sen. Coburn, Tom [R-OK] · R · Cosponsor
• Rep. Klug, Scott L. [R-WI-2] · R · Cosponsor
• Rep. Frisa, Dan [R-NY-4] · R · Cosponsor
• Rep. Brewster, Bill K. [D-OK-3] · D · Cosponsor
• · ssbk00 · Standing
• · hsju00 · Standing
• · hsif00 · Standing

Related records

• related to → Private Securities Litigation Reform Act of 1995
• related to → Providing for consideration of the bill (H.R. 1058) to reform Federal securities litigation, and for other purposes.
• related to → Providing for consideration of the bill (H.R. 1058) to reform Federal securities litigation, and for other purposes.
• related to → Waiving points of order against the conference report to accompany the bill (H.R. 1058) to reform Federal securities litigation, and for other purposes.
• related to ← Private Securities Litigation Reform Act of 1995