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NY A06227
Bill
Status
4/3/2023
Primary Sponsor
David Weprin
Click for details
AI Summary
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Allows mutual funds and institutional investors incorporated in New York or with principal places of business in New York to sue for damages resulting from violations of General Business Law section 352-c.
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Allows public retirement systems defined under Retirement and Social Security Law section 501 to bring similar damage actions for security-related violations.
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Restricts lawsuits to institutional investors and pension plans with at least 500 beneficiaries at the time of the security purchase or sale.
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Establishes a six-year statute of limitations from when the plaintiff discovered or reasonably could have discovered the prohibited act.
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Requires plaintiffs to prove defendants either knew the truth, could have known it with reasonable effort, made no reasonable effort to ascertain it, or had no knowledge regarding false representations, and requires proof of negligence for other allegations.
Legislative Description
Authorizes a public retirement system, as defined in section 501 of the retirement and social security law, mutual fund, or other institutional investor to bring actions for damages sustained due to the commission of certain prohibited and criminal acts in violation of the Martin Act (Fraudulent Practice in Respect to Stocks, Bonds and other Securities).
Last Action
referred to governmental employees
1/3/2024