Securities Litigation Attorney Accountability and Transparency Act

Bill: 110-hr-5463
Sponsor: Rep. Hensarling, Jeb [R-TX-5]
Introduced: 2008-02-14 in the House
Policy area: Finance and Financial Sector
Subjects: Campaign funds
Civil actions and liability
Class actions (Civil procedure)
Commerce
Competitive bidding
Conflict of interests
Congress
Congressional investigations
Congressional reporting requirements
Evidence (Law)
Frivolous lawsuits
Government Operations and Politics
Law
Lawyers
Legal advertising and soliciting
Legal ethics
Legal fees
Political action committees
Securities fraud
Securities industry

Summary:
action_date: 2008-02-14
text: 
Securities Litigation Attorney Accountability and Transparency Act - Amends the Securities Exchange Act of 1934 and the Securities Act of 1933 to state that, in any private action in which the court enters a final judgment against plaintiff on the basis of a motion to dismiss, motion for summary judgment, or a trial on the merits, the court shall, upon defendant's motion, determine whether: (1) the position of the plaintiff was not substantially justified; (2) imposition of fees and expenses on the plaintiff's attorney would be just; and (3) the cost of such fees and expenses to the defendant is substantially burdensome or unjust.

Requires the court to award the defendant reasonable fees and other expenses, and impose such fees and expenses on the plaintiff's attorney, if the court makes positive determinations in such a case.

Places the burden of persuasion upon the defendant as to whether or not the position of the plaintiff was substantially justified.

Requires plaintiff and plaintiff's attorney to provide sworn, signed certifications that identify any actual or promised payment by the attorney to the plaintiff, beyond the plaintiff's pro rata share of any recovery.

Requires similar plaintiff and plaintiff's attorney certifications regarding: (1) legal representations; (2) contributions; and (3) conflicts of interest.

Requires the court, in exercising discretion over the approval of lead counsel, to employ a competitive bidding process as one of the criteria (unless the court determines that such a process is not feasible). 

Instructs the Comptroller General to study and report to certain congressional committees on average hourly fees in securities class actions.


Legislative actions:
action_date: 2008-03-25
text: Referred to the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.
action_date: 2008-03-17
text: Referred to the Subcommittee on Courts, the Internet, and Intellectual Property.
action_date: 2008-02-14
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: 2008-02-14
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: 2008-02-14
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: 2008-02-14
text: Introduced in House
action_date: 2008-02-14
text: Introduced in House