Clinton signs bill pre-empting securities suits; new law prevents state court end-run around the 1995 securities law reforms

Article Abstract:

The Securities Litigation Uniform Standards Act of 1998 will mandate trial in federal courts under federal law of securities class actions involving nationally traded securities based on false and misleading statements, and three SEC commissioners, including Chmn Arthur Levitt Jr, endorsed this act. This statute's stated goal is to forestall securities class action suits filed in state courts under state law by the plaintiff's class action bar to end-run the protections to end-run the protections given issuers of securities under the Private Securities Litigation Reform Act of 1995.

Exclusive and concurrent legislative powers, Preemption (Legislative power)

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Corporate crime; attorney-client privilege

Article Abstract:

The attorney-client privilege as applied to corporations is discussed, and its first discussion in a judicial ruling occurred in Upjohn Co. v. United States, where the court found the control group test used by many corporations to be lacking. Justice Department prosecutors are undermining the privilege with their increasing demand that corporations waive it as a prerequisite to resolving criminal cases.

Cases, Confidential communications, Attorney-client privilege, Criminal liability of juristic persons, Juristic persons criminal liability

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Insider trading; SEC cracks down

Article Abstract:

Issues are discussed regarding the SEC's proposed strict liability for insider trading in securities and some federal courts' disagreement with this move, the agency's proposed amendment to Rule 10b-5, which would codify the restriction of trading of those with inside information; and how corporate counsel should advise clients once the new rule is in force.

Remedies, Insider trading in securities, Insider trading (Securities)

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