PlainBillCongress, translated.Legislation. Context. Public interest.Became Public Law No: 104-67.
Congressional Research Service
Version 36 · Passed House amended · Mar 8, 1995
Securities Litigation Reform Act - Amends the Securities Exchange Act of 1934, with respect to class actions, to require a court-appointed class action steering committee, composed of class members, to direct counsel for the plaintiff class (plaintiff steering committee). (Sec. 2) Prohibits the use of disgorgement funds resulting from actions brought by the Securities Exchange Commission (the Commission) to pay legal expenses incurred by private parties seeking distribution of such funds. (Sec. 3) Declares that the portion of any final judgment or settlement awarded to class plaintiffs serving as the representative parties shall be equal (on a per share basis) to the portion of the final judgment awarded to all other members of the class. Revises the guidelines for private class action suits to: (1) restrict to five the number of class actions filed by a named plaintiff during any three-year period; (2) subject a losing party litigant, if certain conditions apply, to liability for the prevailing party's legal fees; and (3) require the court to make a disqualifying conflict of interest determination with respect to a plaintiff's counsel who directly owns or has a beneficial interest in the securities that are the subject of the litigation. Requires a court to require just and equitable security for the payment of awardable fees and expenses from the attorney for the plaintiff class, the plaintiff class, or both. Sets forth disclosure guidelines for any proposed settlement agreement that is disseminated to the plaintiff class, including: (1) a statement about agreement or disagreement on the amount of recoverable damages per share and the likelihood of the plaintiff's prevailing; (2) the amount of legal costs and fees sought as part of the settlement; and (3) the identification of lawyers' representatives who will be available to answer questions from class members. Revises the guidelines for private class action suits to: (1) mandate discharge of a defendant who settles before verdict or judgment from all claims for contribution by nonsettling persons; (2) provide for recovery of contribution by a person who becomes liable for damages from certain non-parties who would have been liable for the same damages, if joined in the original suit; and (3) grant defendants the right to submit to the jury written interrogatories on the issue of each defendant's state of mind (scienter) at the time the alleged violation occurred. Prohibits brokers or dealers from soliciting or accepting referral fees for assisting an attorney in obtaining the representation of a customer in any private action. (Sec. 4) Delineates the requirements for securities fraud actions, including: (1) explicit pleading and proof of scienter; (2) plaintiff's reliance on a material misstatement or omission that proximately caused the plaintiff's loss; and (3) limitations on damages. (Sec. 5) Defines the circumstances ("safe harbor") in which a person shall not be held liable in a private action based on a fraudulent statement with respect to a forward-looking statement (projections or estimates of future events). Prescribes guidelines under which the court shall restrict discovery to the specific issue of the applicability of the "safe harbor." Directs the Commission to adopt a regulatory framework regarding the making of forward-looking statements that will be deemed to preclude liability under this Act. (Sec. 6) Amends the Racketeer Influenced and Corrupt Organizations statute to exclude from its purview an action involving fraud in the sale of securities. (Sec. 7) Amends the Securities Exchange Act of 1934 to include within statutorily mandated audit requirements specified fraud detection and disclosure procedures to be followed by an independent public accountant. Authorizes the Securities and Exchange Commission to impose civil penalties for willful violations of this Act by an independent public accountant.
People & committees
Rep. Bliley, Tom [R-VA-7] · R–VA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Became Public Law No: 104-67.
Became Public Law No: 104-67.
Message on Senate action sent to the House.
Passed Senate over veto by Yea-Nay Vote. 68-30. Record Vote No: 612. (consideration: CR S19180)
Senate roll call 612 · Individual votesPassed Senate over veto: Passed Senate over veto by Yea-Nay Vote. 68-30. Record Vote No: 612.(consideration: CR S19180)
Senate roll call 612 · Individual votesVeto message considered by Senate by Unanimous Consent. (consideration: CR S19146-19154)
Veto message received in Senate. Held at the desk.
Two-thirds of the Members present having voted in the affirmative the bill is passed, the objections of the President to the contrary notwithstanding. Passed by the Yeas and Nays (2/3 required): 319 - 100, 1 Present (Roll No. 870). (consideration: CR H15215-15224)
House roll call 870 · Individual votesPassed House over veto: Two-thirds of the Members present having voted in the affirmative the bill is passed, the objections of the President to the contrary notwithstanding. Passed by the Yeas and Nays (2/3 required): 319 - 100, 1 Present (Roll No. 870).(consideration: CR H15215-15224)
House roll call 870 · Individual votesDEBATE - The House proceeded with one hour of debate on question of passage of the bill, the objections of the President to the contrary notwithstanding.
The Chair announced that the message of the President would be spread at large upon the pages of the Journal and that the veto message and the bill be printed as a House Document
The Chair laid before the House the veto message from the President.
Vetoed by President. (consideration: CR 12/20/95 H15214-15215)
Vetoed by President.(consideration: CR 12/20/95 H15214-15215)
Mr. Thomas asked unanimous consent That if the Chair lays before the House a veto message from the President on the bill H.R. 1058 today--that the objections of the President be spread at large upon the Journal and that the message and bill be ordered printed as a House Document; and that consideration of the veto message be postponed until Wednesday, December 20, 1995. Agreed to without objection.
Mr. Thomas asked unanimous consent that if the Chair lays before the House a veto message from the President on the bill today, that the message of the President be spread at large upon the pages of the Journal; that the message and accompanying papers be printed as a House Document; and that further consideration of the veto message be postponed until Wednesday, December 20, 1995. Agreed to without objection.
Presented to President.
Presented to President.
On agreeing to the conference report Agreed to by the Yeas and Nays: 320 - 102, 1 Present (Roll no. 839). (consideration: CR H14039-14055)
House roll call 839 · Individual votesMotion to reconsider laid on the table Agreed to without objection.
Conference report agreed to in House: On agreeing to the conference report Agreed to by the Yeas and Nays: 320 - 102, 1 Present (Roll no. 839).(consideration: CR H14039-14055)
House roll call 839 · Individual votesThe previous question was ordered without objection.
DEBATE - The House proceeded with one hour of debate on the conference report.
Mr. Bliley brought up conference report H. Rept. 104-369 for consideration as a privileged matter.
Rule H. Res. 290 passed House.
Message on Senate action sent to the House.
Rules Committee Resolution H. Res. 290 Reported to House. Rule provides for consideration of the conference report to H.R. 1058. Waiving all points of ordder against the conference report and against its consideration.
Senate agreed to conference report by Yea-Nay Vote. 65-30. Record Vote No: 589. (consideration: CR S17997)
Senate roll call 589 · Individual votesConference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 65-30. Record Vote No: 589.(consideration: CR S17997)
Senate roll call 589 · Individual votesConference report considered in Senate. By Unanimous Consent.
Conference papers: Senate report and managers' statement held at the desk in Senate.
Conference report H. Rept. 104-369 filed. (text of conference report: CR H13692-13699)
Conference report filed: Conference report H. Rept. 104-369 filed.(text of conference report: CR H13692-13699)
Conferees agreed to file conference report.
Conference committee actions: Conferees agreed to file conference report.
Message on Senate action sent to the House.
Senate insists on its amendments agrees to request for a conference, appoints conferees D'Amato; Gramm; Bennett; Grams; Domenici; Sarbanes; Dodd; Kerry; Bryan. (consideration: CR S17361-17362)
Message on House action received in Senate and at the desk: House requests a conference.
The Speaker appointed additional conferees - from the Committee on the Judiciary for consideration of the House bill, and the Senate amendment, and modifications committed to conference: Hyde, McCollum, and Conyers.
The Speaker appointed conferees - from the Committee on Commerce for consideration of the House bill, and the Senate amendment, and modifications committed to conference: Bliley, Tauzin, Fields (TX), Cox, White, Dingell, Markey, Bryant (TX), and Eshoo.
Motion to reconsider laid on the table Agreed to without objection.
On motion that the House disagree to the Senate amendments, and request a conference Agreed to without objection. (consideration: CR H10690)
Mr. Bliley asked unanimous consent that the House disagree to the Senate amendments, and request a conference.
Message on Senate action sent to the House.
Passed Senate in lieu of S. 240 with an amendment and an amendment to the Title by Yea-Nay Vote. 69-30. Record Vote No: 295.
Senate roll call 295 · Individual votesPassed/agreed to in Senate: Passed Senate in lieu of S. 240 with an amendment and an amendment to the Title by Yea-Nay Vote. 69-30. Record Vote No: 295.
Senate roll call 295 · Individual votesSenate struck all after the Enacting Clause and substituted the language of S. 240 amended.
Measure laid before Senate by unanimous consent. (consideration: CR S9209-9226)
Senate Committee on Banking discharged by Unanimous Consent.
Senate Committee on Banking discharged by Unanimous Consent.
Subcommittee on Securities. Hearings held.
Subcommittee on Securities. Hearings held.
Received in the Senate and read twice and referred to the Committee on Banking.
The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 1058.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by recorded vote: 325 - 99, 1 Present (Roll no. 216).
House roll call 216 · Individual votesPassed/agreed to in House: On passage Passed by recorded vote: 325 - 99, 1 Present (Roll no. 216).
House roll call 216 · Individual votesOn motion to recommit with instructions Failed by recorded vote: 172 - 251, 1 Present (Roll no. 215). (consideration: CR H2863)
House roll call 215 · Individual votesThe previous question on the motion to recommit with instructions was ordered without objection.
DEBATE - The House proceeded with ten minutes of debate on the motion to recommit the bill to the Committee on Commerce with instructions that the Committee report the bill back to the House forthwith with the Manton and Dingell amendments included in the bill.
Mr. Markey moved to recommit with instructions to Commerce.
The House adopted the amendments en gross as agreed to by the Committee of the Whole House on the state of the Union.
The previous question was ordered pursuant to the rule.
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1058.
The House resolved into Committee of the Whole House on the state of the Union for further consideration.
Considered as unfinished business. (consideration: CR H2818-2864)
Committee of the Whole House on the state of the Union rises leaving H.R. 1058 as unfinished business.
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate.
The Speaker designated the Honorable Larry Combest to act as Chairman of the Committee.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 105 and Rule XXIII.
Rule provides for consideration of H.R. 1058 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be considered read. Bill is open to amendments. the bill shall be considered for amendment under the 5-minute rule, not to exceed 8 hours. The Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the amendment to be offered was printed in the Congressional Record. Upon passage H. Res. 103 is laid on the table.
Considered under the provisions of rule H. Res. 105. (consideration: CR H2760-2779)
Rule H. Res. 105 passed House.
Rules Committee Resolution H. Res. 105 Reported to House. Rule provides for consideration of H.R. 1058 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit. Measure will be considered read. Bill is open to amendments. the bill shall be considered for amendment under the 5-minute rule, not to exceed 8 hours. The Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the amendment to be offered was printed in the Congressional Record. Upon passage H. Res. 103 is laid on the table.
Rules Committee Resolution H. Res. 103 Reported to House. Rule provides for consideration of H.R. 1058 with 1 hour of general debate. Previous question shall be considered as ordered except motion to recommit. Measure will be considered read. Bill is open to amendments. It shall be in order to consider the amendment printed in the reort of the Committee on Rules accompanying this resolution, if offered in the manner specified. All points of order against the amendment for failure to comply with clause 7 of rule XVI shall be waived. The bill shall be considered for amendment under the 5-minute rule, not to exceed 8 hours. The Chairman of the Committee of the Whole may accord priority in recognition on the basis of whether the amendment to be offered was printed in the Congressional Record.
Referred to the Committee on Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We currently store references to these documents.
Source last updated: Apr 7, 2025. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze H.R.1058 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.1058 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.1058 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine H.R.1058 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.