[Congressional Record Volume 144, Number 100 (Thursday, July 23, 1998)]
[Extensions of Remarks]
[Page E1402]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          SECURITIES LITIGATION UNIFORM STANDARDS ACT OF 1998

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                               speech of

                          HON. ROSA L. DeLAURO

                             of connecticut

                    in the house of representatives

                         Tuesday, July 21, 1998

  Ms. DeLAURO. Mr. Speaker, in the 104th Congress, I voted to pass the 
Private Securities Litigation Reform Act, which was signed into law. 
The purpose of the law was to reduce the number of frivolous lawsuits 
brought against companies or stock brokers for fraud.
  The bill was aimed at stopping lawsuits by investors in high tech 
companies that didn't make as much money as expected. These lawsuits 
are so commonplace, that sometimes clients are even brought into the 
suit after the suit is filed by a legal representative.
  High-tech companies, of which there are many in Connecticut, have 
volatile stocks and are particularly susceptible to such suits. These 
companies are often forced to settle with investors to avoid court 
costs.
  Now we need to further refine the law for litigants who try to skirt 
the law by suing in state instead of federal court. We need one 
standard for all fifty states. I am pleased to offer my support for the 
Securities Litigation Uniform Standards Act, and I urge my colleagues 
to support this measure and close a frivolous lawsuit loophole.

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