Page:United States Statutes at Large Volume 112 Part 5.djvu/469

This page needs to be proofread.

PUBLIC LAW 105-353 —NOV. 3, 1998 112 STAT. 3227 Public Law 105-353 105th Congress An Act To amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to limit the conduct of securities class actions under State law, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the "Securities Litigation Uniform Standards Act of 1998". SEC. 2. FINDINGS. The Congress finds that— (1) the Private Securities Litigation Reform Act of 1995 sought to prevent abuses in private securities fraud lawsuits; (2) since enactment of that legislation, considerable evidence has been presented to Congress that a number of securities class action lawsuits have shifted from Federal to State courts; (3) this shift has prevented that Act from fully achieving its objectives; (4) State securities regulation is of continuing importance, together with Federal regulation of securities, to protect investors and promote strong financial markets; and (5) in order to prevent certain State private securities class action lawsuits alleging fraud from being used to frustrate the objectives of the Private Securities Litigation Reform Act of 1995, it is appropriate to enact national standards for securities class action lawsuits involving nationally traded securities, while preserving the appropriate enforcement powers of State securities regulators and not changing the current treatment of individual lawsuits. TITLE I—SECURITIES LITIGATION UNIFORM STANDARDS Nov. 3, 1998 [S. 1260] Securities Litigation Uniform Standards Act of 1998 15 USC 78a note. 15 USC 78a note. SEC. 101. LIMITATION ON REMEDIES. (a) AMENDMENTS TO THE SECURITIES ACT OF 1933. — (1) AMENDMENT.— Section 16 of the Securities Act of 1933 (15 U.S.C. 77p) is amended to read as follows: "SEC. 16. ADDITIONAL REMEDIES; LIMITATION ON REMEDIES. "(a) REMEDIES ADDITIONAL. —Except as provided in subsection (b), the rights and remedies provided by this title shall be in