Summary: H.R.3829 — 107th Congress (2001-2002)All Information (Except Text)

There is one summary for H.R.3829. Bill summaries are authored by CRS.

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Introduced in House (02/28/2002)

Shareholder and Employee Rights Restoration Act of 2002 - Amends the Securities Act of 1933 governing private securities litigation to repeal: (1) certain limits on private class actions; (2) the safe harbor applied to forward-looking statements (corporate predictions); (3) proportionate liability of an outside director; and (4) limitations on class action remedies.

Amends the Securities Exchange Act of 1934 to repeal guidelines governing: (1) the safe harbor applied to corporate predictions; (2) limitations on class actions remedies; (3) court-ordered security for payment of costs in class actions; (4) motions to dismiss and stay of discovery; (5) sanctions for abusive litigation; (6) written interrogatories as to defendant's state of mind; (7) limitation on damages; and (8) proportionate liability.

Modifies guidelines for a securities fraud action to prohibit a complaint based upon information and belief from specifying the source of the facts upon which such belief is formed (thus granting whistle blower protection).

Amends the Securities Act of 1933 and the Investment Advisers Act of 1940 to establish liability for aiding and abetting securities violations.

Amends the Securities Exchange Act of 1934 to modify guidelines governing aiding and abetting.

Extends the statute of limitations for an implied private right of action to no later than three years after the date on which the alleged violation was discovered.