Shareholder and Employee Rights Restoration Act of 2003

Bill: 108-hr-636
Sponsor: Rep. Stupak, Bart [D-MI-1]
Introduced: 2003-02-05 in the House
Policy area: Finance and Financial Sector
Subjects: Class actions (Civil procedure)
Corporation directors
Crime and Law Enforcement
Damages
Discovery (Law)
District courts
Evidence (Law)
Fines (Penalties)
Frivolous lawsuits
Government Operations and Politics
Information disclosure (Securities law)
Injunctions
Investment advisers
Jurisdiction
Law
Legal fees
Liability (Law)
Limitation of actions
Mutual funds
Prosecution
Securities fraud
State courts
State laws
Stockholders
Surety and fidelity

Summary:
action_date: 2003-02-05
text: Shareholder and Employee Rights Restoration Act of 2003 - Amends the Securities Act of 1933 governing private securities litigation to repeal: (1) certain limits on private class actions; (2) the safe harbor applied to forward-looking statements (corporate predictions); (3) proportionate liability of an outside director; and (4) specified limitations on class action remedies.
Amends the Securities Exchange Act of 1934 to repeal guidelines governing: (1) the safe harbor applied to corporate predictions; (2) limitations on class actions remedies; (3) court-ordered security for payment of costs in class actions; (4) motions to dismiss and stay of discovery; (5) sanctions for abusive litigation; (6) written interrogatories as to defendant's state of mind; (7) limitation on damages; and (8) proportionate liability.
Modifies guidelines governing a securities fraud action to prohibit a complaint that is based upon information and belief from specifying the source of the facts upon which such belief is formed (thus granting whistle blower protection).
Amends the Securities Act of 1933 and the Investment Advisers Act of 1940 to establish liability for aiding and abetting securities violations.
Amends the Securities Exchange Act of 1934 to modify guidelines governing aiding and abetting.
Extends the statute of limitations for an implied private right of action to three years after the date on which the alleged violation was discovered.

Legislative actions:
action_date: 2003-03-06
text: Referred to the Subcommittee on Courts, the Internet, and Intellectual Property.
action_date: 2003-02-27
text: Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
action_date: 2003-02-05
text: Referred to the Committee on Financial Services, 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.
action_date: 2003-02-05
text: Referred to the Committee on Financial Services, 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.
action_date: 2003-02-05
text: Referred to the Committee on Financial Services, 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.
action_date: 2003-02-05
text: Introduced in House
action_date: 2003-02-05
text: Introduced in House