Proposition Summary

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 of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: Adoption of this measure would have unknown, but probably not significant, fiscal impact on state and local governments.

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Popular Vote Results

Y: 2320747; A: 40.68; N: 3384580; B: 59.32

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For Author

Charles Schwab, CEO, Charles Schwab & Co.; Kirk West, President, California Chamber of Commerce; Lewis K. Uhler, President, National Tax Limitation Committee

Against Author

Howard L. Owens, Legislative Director, Congress of California Seniors, Inc.

Rebuttal Author

Leah Kane, Chair of Keating Victims Association of Leisure World, Laguna Hills, California; Lois Wellington, President, Congress of California Seniors

Rebuttal Against Author

Alan Shugart, Chairman, Seagate Technology, Inc.