Mutual Fund Litigation Reform Act

Bill: 117-hr-699
Sponsor: full_name: Rep. Emmer, Tom [R-MN-6]
Introduced: 2021-02-02
Policy area: Finance and Financial Sector
Subjects: Civil actions and liability

Evidence and witnesses

Financial services and investments

Securities
Latest action: action_date: 2021-03-22
text: Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.

Summaries:
action_date: 2021-02-02
action_desc: Introduced in House
text: <p><b>Mutual Fund Litigation Reform Act</b></p> <p> This bill specifies burden-of-proof and complaint requirements with respect to certain actions for breach of fiduciary duty against an investment adviser. Specifically, complaints must state certain facts with particularity, and a security holder has the burden of proving a breach of fiduciary duty by clear and convincing evidence.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 699 IN THE HOUSE OF REPRESENTATIVES February 2, 2021 Mr. Emmer introduced the following bill; which was 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 A BILL To amend the Investment Company Act of 1940 to provide complaint and burden of proof requirements for certain actions for breach of fiduciary duty.

1. Short title This Act may be cited as the Mutual Fund Litigation Reform Act . 2. Complaint and burden of proof requirements for certain actions for breach of fiduciary duty Section 36(b) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–35(b) ) is amended by adding at the end the following: (7) In any such action brought by a security holder of a registered investment company on behalf of such company— (A) the complaint shall state with particularity all facts establishing a breach of fiduciary duty, and, if an allegation of any such facts is based on information and belief, the complaint shall state with particularity all facts on which that belief is formed; and (B) such security holder shall have the burden of proving a breach of fiduciary duty by clear and convincing evidence. .