A bill to amend the Securities Exchange Act of 1934 and the Securities Act of 1933, to address liability standards in connection with violations of the Federal securities laws, and for other purposes.
Deems any person that recklessly provides substantial assistance to (aids or abets) another person in violation of Federal securities laws to be in violation of such laws to the same extent as the person to whom such assistance is provided.
Establishes a statute of limitations for an implied private right of action of: (1) five years after an alleged violation occurred; or (2) three years after it was discovered.
Repeals the prohibition against all but specified types of private class actions alleging either misrepresentation or omission of a material fact or manipulative or deceptive practices in connection with securities sales or purchases (thus permitting private class actions without limitation).
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text of measure as introduced: CR S661-662)
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