William Tauzin: “Mr. Chairman, there are two classes of stockholders whose interests…”

On the recordMarch 8, 1995

Mr. Chairman, there are two classes of stockholders whose interests can be affected by a 10B(5) statute. There is a class of investors who believes they have been defrauded, and they ought to be able to file a lawsuit. Under this bill they can file that suit. Any city, county, or individual in this country who believes they have been defrauded in their investments can file a suit, and if there is a fraudulent claim, they will have the full protections of joint and several liability that exists in current law. Under this bill the big change is that if you file a suit for something other than intentional fraud in this judge-made area of the law, you are going to have to specify who is guilty of the recklessness or who is guilty of the misconduct, and in the court proceedings they are going to find out what percent they contributed, and they will be liable for that percentage. It is called proportionate liability.

Said by

William Tauzin

Republican · Louisiana

Source

govinfo.gov

Editor's note · Context

Discussing the implications of a 10B(5) statute on stockholders and investors.

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William Tauzin: “Mr. Chairman, there are two classes of stockholders whose interests can be affected by a 10B(5) statute. There is a…”

Editor's note · Context