Attorney General No.

SA95RF0001

Secretary of State No.

659

Description

ATTORNEYS' FEES. SHAREHOLDER ACTIONS. CLASS ACTIONS. INITIATIVE STATUTE. Requires losing party to pay winning party's reasonable attorneys fees and expenses in shareholder actions against corporations and in class actions based on securities law violations. Payment by member of losing party not required if position was substantially justified and payment would be unjust. Court may require losing party's attorney to pay. After hearing, court may require plaintiff to furnish bond for defendant's estimated fees and expenses, unless plaintiff owns or traded at least 5% of shares. Plaintiff's attorney may agree to furnish bond and pay defendant's fees and expenses for plaintiff. Summary by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The fiscal impact of this measure on state and local governments is unknown. It could result in either net savings or costs, depending largely on how attorneys and their clients respond.

Proponents

Thomas Proulx Alan Shugart Bill Westermeyer Alliance To Revitalize California, 1250 Sixth Street, Suite 202, Santa Monica, Ca 90401 (310) 451-2522

Date

4-27-1995

Document Type

Initiative

Qualified

Qualified

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