Securities Litigation Uniform Standards Act of 1998

TABLE OF CONTENTS: Title I: Securities Litigation Uniform Standards Title II: Reauthorization of the Securities and Exchange Commission Title III: Clerical and Technical Amendments Securities Litigation Uniform Standards Act of 1998 - Title I: Securities Litigation Uniform Standards - Amends the Securities Act of 1933 and the Securities Exchange Act of 1934 to prohibit any private class action based upon State statutory or common law in State or Federal court by any private party alleging: (1) an untrue statement or omission in connection with the purchase or sale of a covered security; or (2) that the defendant used any manipulative or deceptive device in connection with such a transaction. (Sec. 101) Declares that any class action brought in any State court involving a covered security shall be removable to the Federal district court for the district in which the action is pending. Exempts from such prohibition certain class actions based upon statutory or common law of the State in which the issuer is either incorporated or organized. Declares that such a class action may be maintained in State or Federal court by a private party if it involves: (1) the purchase or sale of securities by the issuer (or an affiliate) exclusively from or to holders of the issuer's equity securities; or (2) any communication about such a sale made by or on behalf of the issuer (or an affiliate) …

Congressional Research Service · 1998-07-22