What's happening
This bill allows certain New York public retirement systems and Taft-Hartley health and welfare plans to sue for damages over securities fraud, with specific eligibility and time limits.
Why it matters
Empowers major public pension and Taft-Hartley benefit funds to seek financial recovery after securities fraud. , potentially increasing accountability for companies and individuals accused of misleading institutional investors.
Excludes smaller plans (those with fewer than 100 beneficiaries) from these new rights. , which means the law specifically targets larger, systemically important funds, possibly to ensure only well-resourced entities pursue such litigation.
Sets a six-year window from discovery (or when it could reasonably have been discovered) to file claims. , which could lead to more lawsuits, as it extends or clarifies the timeframe for institutional investors to act on suspected fraud.
Prevents automatic delays in evidence-sharing (discovery) when defendants file motions to dismiss. , shortening litigation timelines and potentially giving plaintiffs a tactical advantage in gathering information early in the case.
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Who cares
Headline styles
Let Pension Funds Sue Scammers
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to codes
- Referred to codes
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Pension Funds Sue Fraudsters
In Senate Committee · Consumer Protection · Sponsor James Sanders Jr.
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6242
2017-2018 Regular Sessions
IN ASSEMBLY
March 1, 2017
Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Codes
AN ACT to amend the general business law, in relation to enacting the "institutional investor recovery act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "institutional investor recovery act".
§ 2. The general business law is amended by adding a new section 353-b to read as follows:
§ 353-b. Action by certain public retirement systems and multi-employer health and welfare retirement plans organized under the Taft-Hartley act. (a) Any public retirement system as defined in subdivision twenty-three of section five hundred one of the retirement and social security law, or any multi-employer health and welfare retirement plan organized under the Taft-Hartley act and incorporated under the laws of this state or which maintains its principal place of business in this state, that is damaged in connection with the purchase or sale of a security as a result of the commission of any act prohibited by section three hundred fifty-two-c of this article, may bring an action for damages against any person, partnership, corporation, company, limited liability company, trust, or association that committed, aided or abetted or in any way participated in the commission of such prohibited act.
(b) No public retirement system or multi-employer health and welfare retirement plans organized under the Taft-Hartley act that had fewer than one hundred beneficiaries at the time of the purchase or sale of the security may bring an action under this section.
(c) No such action may be brought more than six years from the time the plaintiff discovered the allegedly prohibited act or could, with reasonable diligence, have discovered it.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07805-01-7
A. 6242 2
(d) After such action has been brought, notwithstanding any provision of law to the contrary, disclosure and related proceedings shall not be stayed during the pendency of any motion to dismiss, unless the court so directs.
§ 3. Section 353 of the general business law is amended by adding a new subdivision 5 to read as follows:
5. Nothing in this article shall preempt any purchaser or seller of securities or commodities from bringing any common law claims concerning any alleged deception, misrepresentation, concealment, suppression, fraud, false pretense or false promise made in connection with the sale or purchase of such securities or commodities as described in section three hundred fifty-two of this article.
§ 4. This act shall take effect immediately and shall apply to causes of action accruing and actions pending before, on, or after its effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.