[Congressional Record Volume 140, Number 145 (Friday, October 7, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 7, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
         S. 1976, THE PRIVATE SECURITIES LITIGATION REFORM ACT

  Mr. HATCH. Mr. President, I rise to support and to cosponsor S. 1976, 
the Private Securities Litigation Reform Act of 1994. I understand that 
this bill has not yet been considered by the Banking Committee and is 
unlikely to pass this session of Congress. However, when this measure 
is taken up, I hope that Senators, while acting on the many meritorious 
provisions of this bill, will also take into account several 
reservations that I, and I am sure others, have.
  The proposed Private Securities Litigation Reform Act contains what I 
believe are worthwhile provisions that are designed to protect the 
interests of investors and preserve the integrity of the securities 
market. These include, in part, alternative dispute resolution 
procedures to settle implied right of actions under section 15(c) of 
the Securities Exchange Act of 1934 and added protection for 
accountants and auditors when diligence is practiced and the procedures 
established by this bill and the Commission are followed. A system of 
accountant self-regulation and discipline is established.
  However, there are certain other provisions in this proposed measure 
that are troubling. For instance, the bill denies small investors 
access to the Federal courts for certain types of securities fraud. The 
bill also establishes what appears to me to be overly strict standards 
for fraud pleadings.
  Nonetheless, because the bill does contain positive corrections to 
security law procedures, it is my hope that this measure will be 
reintroduced in the next Congress, fully considered, and passed. I 
commend the sponsor of S. 1976, Senator Dodd, for his leadership and 
look forward to working with him on this legislation next year.

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