What's happening
This bill allows certain large public retirement systems and Taft-Hartley health and welfare plans to sue for securities fraud damages.
Why it matters
Empowers large public retirement systems and Taft-Hartley health/welfare plans. to directly sue for securities fraud, potentially increasing accountability for financial misconduct impacting the retirement security of thousands of workers and retirees.
Sets specific eligibility criteria. only systems or plans with at least 100 beneficiaries can bring these lawsuits, ensuring that only sizable institutional investors (not small funds or individuals) can use this legal tool.
Removes automatic delays in legal discovery. during motions to dismiss, which gives plaintiffs more immediate access to evidence and may deter defendants from using procedural tactics to slow or block cases.
Affirms that common law fraud claims are preserved. for all securities or commodities purchasers/sellers, meaning this law does not limit other legal avenues for recovering losses due to deception or fraud in financial transactions.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Let Pension Funds Sue Fraud
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 for Fraud
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
5828
2019-2020 Regular Sessions
IN ASSEMBLY
February 19, 2019
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.
LBD09160-01-9
A. 5828 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.