[Congressional Record Volume 141, Number 205 (Wednesday, December 20, 1995)]
[Extensions of Remarks]
[Page E2431]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     OPPOSES SECURITIES LITIGATION CONFERENCE REPORT VETO OVERRIDE

                                 ______


                         HON. PETER A. DeFAZIO

                               of oregon

                    in the house of representatives

                      Wednesday, December 20, 1995

  Mr. De FAZIO. Mr. Speaker, I strongly oppose the motion to override 
the President's veto of the Securities Litigation Conference Report.
  The laws governing securities litigation can certainly stand to be 
improved, but the language of this conference report does much more 
harm than good. This legislation--written by and for the large 
securities firms--is anti-small investor and anti-working family.
  The conference report reduces consumers protection. An investors 
ability and right to sue unscrupulous securities firms should not be 
stifled or circumscribed by Congress. For example, the language 
includes a sweeping loser pays provision that will make it extremely 
difficult for anyone without a multimillion dollar trust fund to 
challenge a large corporation in court.
  Supporters of this legislation claim that there is an explosion of 
frivolous suits. The fact is that the number of securities class action 
suits has shrunk over the past 20 years. During the last several years, 
suits have been filed against only 120 companies annually--out of over 
14,000 public corporations reporting to the SEC.
  The President was correct in his veto. This conference report goes 
against the interests of working people and small investors. I 
sincerely hope that the Congress will sustain the veto that we can then 
enact true reform of our Nation's securities litigation laws.

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