Some key provisions of the securities litigation legislation:
December 22, 1995
Web posted at: 3:00 p.m. EST
- Limits attorney's fees to a reasonable percentage of the final settlement.
- Bars "professional plaintiffs" from being named in more than five class action lawsuits within a three-year period.
- Permits the court to award attorney fees and costs to the prevailing party if a party brings a meritless or frivolous action.
- Requires plaintiffs to cite concrete facts for each instance of alleged fraudulent behavior.
- Prevents a plaintiff who alleges fraud from recovering damages unrelated to the fraud.
- Establishes a "safe harbor" to protect companies from liability for publishing certain statements that make market predictions.
- Requires the court to obtain from the jury, when money damages are sought, a finding on the defendant's state of mind at the time of the alleged violation.
By the Associated Press
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