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Title: Securities Litigation
Vote Smart's Synopsis:
Vote to adopt a conference report requiring securities class action lawsuits involving more than fifty parties to be filed in a federal district court.
More Info About this Vote
- States that any class action suit brought in a state court involving a covered security shall be subject to removal to the applicable federal district court.
- Notes that the securities commission or similar agency of any state shall retain the power to investigate and bring enforcement actions.
- Stipulates that all covered class action suits brought by parties alleging fraud in securities transactions are governed by the relevant federal statutes, which supercede similar state and local laws.
- Retains the discretion of state courts to determine whether actions should be filed jointly or consolidated.
- Amends the Securities Exchange Act of 1934 to rescind the certification, filing, and reporting requirements for the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR).
- Amends the Securities Act of 1933 to exempt certain state securities hearings from federal registration requirements.
NOTE: THIS VOTE WAS TAKEN UNDER A SUSPENSION OF THE RULES TO CUT OFF DEBATE EARLY AND VOTE TO PASS THE BILL, THEREBY REQUIRING A TWO-THIRDS MAJORITY FOR PASSAGE.