Expansion of Securities Litigation Defeated on Senate Floor

By Loretta Macktal, Executive Assistant to the Vice President, Government Relations

Capitol Update, June 3, 2003 Share this on FacebookTweet thisEmail this to a friend

SB 766 (Dean Florez, D-Shafter), a bill that proposed to drastically expand the exposure of individual investors, persons serving on corporate boards, financial news reporters, accounting professionals, and others to frivolous litigation for alleged securities fraud was soundly defeated on the Senate Floor on May 29th.

The bill, opposed by a very large coalition of business interests including CMTA, was defeated by a vote of 11-25. While this is a victory for the business community, Senator Florez can technically bring the bill up for an additional vote on the Senate Floor prior to June 6th, the deadline for all Senate bills to pass out of the Senate. But, with so many democrats voting no on this measure, it is unlikely to pass out of the Senate in its current form.
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