Source: https://www.law.cornell.edu/uscode/text/15/77z%E2%80%931
Timestamp: 2018-12-13 10:44:40
Document Index: 626344556

Matched Legal Cases: ['§ 77', '§ 77', '§\u202f77', '§\u202f27', '§\u202f101', '§\u202f101', '§\u202f301', '§\u202f301', '§\u202f101']

15 U.S. Code § 77z-1 - Private securities litigation | US Law | LII / Legal Information Institute
15 U.S. Code § 77z-1 - Private securities litigation
§ 77z–1.
(A) In generalEach plaintiff seeking to serve as a representative party on behalf of a class shall provide a sworn certification, which shall be personally signed by such plaintiff and filed with the complaint, that—
states that the plaintiff has reviewed the complaint and authorized its filing;
states that the plaintiff did not purchase the security that is the subject of the complaint at the direction of plaintiff’s counsel or in order to participate in any private action arising under this subchapter;
states that the plaintiff is willing to serve as a representative party on behalf of a class, including providing testimony at deposition and trial, if necessary;
sets forth all of the transactions of the plaintiff in the security that is the subject of the complaint during the class period specified in the complaint;
identifies any other action under this subchapter, filed during the 3-year period preceding the date on which the certification is signed by the plaintiff, in which the plaintiff has sought to serve, or served, as a representative party on behalf of a class; and
states that the plaintiff will not accept any payment for serving as a representative party on behalf of a class beyond the plaintiff’s pro rata share of any recovery, except as ordered or approved by the court in accordance with paragraph (4).
(i) In generalNot later than 20 days after the date on which the complaint is filed, the plaintiff or plaintiffs shall cause to be published, in a widely circulated national business-oriented publication or wire service, a notice advising members of the purported plaintiff class—
of the pendency of the action, the claims asserted therein, and the purported class period; and
that, not later than 60 days after the date on which the notice is published, any member of the purported class may move the court to serve as lead plaintiff of the purported class.
(I) In generalSubject to subclause (II), for purposes of clause (i), the court shall adopt a presumption that the most adequate plaintiff in any private action arising under this subchapter is the person or group of persons that—
has either filed the complaint or made a motion in response to a notice under subparagraph (A)(i);
in the determination of the court, has the largest financial interest in the relief sought by the class; and
otherwise satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure.
(II) Rebuttal evidenceThe presumption described in subclause (I) may be rebutted only upon proof by a member of the purported plaintiff class that the presumptively most adequate plaintiff—
will not fairly and adequately protect the interests of the class; or
is subject to unique defenses that render such plaintiff incapable of adequately representing the class.
(7) Disclosure of settlement terms to class membersAny proposed or final settlement agreement that is published or otherwise disseminated to the class shall include each of the following statements, along with a cover page summarizing the information contained in such statements:
(A) In generalSubject to subparagraphs (B) and (C), for purposes of paragraph (2), the court shall adopt a presumption that the appropriate sanction—
for failure of any responsive pleading or dispositive motion to comply with any requirement of Rule 11(b) of the Federal Rules of Civil Procedure is an award to the opposing party of the reasonable attorneys’ fees and other expenses incurred as a direct result of the violation; and
for substantial failure of any complaint to comply with any requirement of Rule 11(b) of the Federal Rules of Civil Procedure is an award to the opposing party of the reasonable attorneys’ fees and other expenses incurred in the action.
(B) Rebuttal evidenceThe presumption described in subparagraph (A) may be rebutted only upon proof by the party or attorney against whom sanctions are to be imposed that—
the award of attorneys’ fees and other expenses will impose an unreasonable burden on that party or attorney and would be unjust, and the failure to make such an award would not impose a greater burden on the party in whose favor sanctions are to be imposed; or
the violation of Rule 11(b) of the Federal Rules of Civil Procedure was de minimis.
(May 27, 1933, ch. 38, title I, § 27, as added Pub. L. 104–67, title I, § 101(a), Dec. 22, 1995, 109 Stat. 737; amended Pub. L. 105–353, title I, § 101(a)(2), title III, § 301(a)(5), Nov. 3, 1998, 112 Stat. 3230, 3235.)
The Federal Rules of Civil Procedure, referred to in subsecs. (a)(1), (3)(A)(iii), (B)(iii)(I)(cc), (vi), (b)(2), and (c), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.
1998—Pub. L. 105–353, § 301(a)(5), made technical correction relating to placement of section in subchapter.
Subsec. (b)(4). Pub. L. 105–353, § 101(a)(2), added par. (4).
Amendment by section 101(a)(2) of Pub. L. 105–353 not to affect or apply to any action commenced before and pending on Nov. 3, 1998, see section 101(c) of Pub. L. 105–353, set out as a note under section 77p of this title.
Section not to affect or apply to any private action arising under this subchapter or title I of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), commenced before and pending on Dec. 22, 1995, see section 108 of Pub. L. 104–67, set out as an Effective Date of 1995 Amendment note under section 77l of this title.
Nothing in section to be deemed to create or ratify any implied right of action, or to prevent Commission, by rule or regulation, from restricting or otherwise regulating private actions under Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), see section 203 of Pub. L. 104–67, set out as a note under section 78j–1 of this title.