Thomas Manton: “virtually all of the evidence assembled by the Commerce Committee during its consideration of the securities litigation…”

“virtually all of the evidence assembled by the Commerce Committee during its consideration of the securities litigation reform issue indicated that Congress can and should take reasonable steps to reduce or eliminate frivolous securities lawsuits while at the same time protecting--rather than diminishing or even wiping out--the legitimate rights of defrauded individual investors to seek redress in our courts. My amendment, based on rule XI of the Federal Rules of Civil Procedure, strikes that balance. This amendment provides that Federal courts must shift the cost of attorney's fees to the losing party if the court finds that the loser's arguments were frivolous or presented in bad faith. Furthermore, this amendment would also require the court to impose sanctions on attorneys who bring these cases. This is a tough standard but, and this is critical, it's also a fair standard. The amendment responds directly to the concerns about frivolousness and abuse that underlie the legislation we have been considering. The purpose of the legislation before us today is to deter those who exploit the otherwise effective laws Congress has enacted to protect the investor.”