Enacts the "institutional investor recovery act"; relates to an action by certain public retirement systems or multi-employer health and welfare plans organized under the Taft-Hartley act.
STATE OF NEW YORK
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4497--A
2011-2012 Regular Sessions
IN SENATE
April 7, 2011
___________
Introduced by Sens. LIBOUS, PARKER, SAVINO -- read twice and ordered
printed, and when printed to be committed to the Committee on Consumer
Protection -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
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 Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "institutional investor recovery act".
3 § 2. The general business law is amended by adding a new section 353-b
4 to read as follows:
5 § 353-b. Action by certain public retirement systems and multi-employ-
6 er health and welfare retirement plans organized under the Taft-Hartley
7 act. (a) Any public retirement system as defined in subdivision twen-
8 ty-three of section five hundred one of the retirement and social secu-
9 rity law, or any multi-employer health and welfare retirement plan
10 organized under the Taft-Hartley act and incorporated under the laws of
11 this state or which maintains its principal place of business in this
12 state, that is damaged in connection with the purchase or sale of a
13 security as a result of the commission of any act prohibited by section
14 three hundred fifty-two-c of this article, may bring an action for
15 damages against any person, partnership, corporation, company, limited
16 liability company, trust, or association that committed, aided or abet-
17 ted or in any way participated in the commission of such prohibited act.
18 (b) No public retirement system or multi-employer health and welfare
19 retirement plans organized under the Taft-Hartley act that had fewer
20 than one hundred beneficiaries at the time of the purchase or sale of
21 the security may bring an action under this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06099-11-1
S. 4497--A 2
1 (c) No such action may be brought more than six years from the time
2 the plaintiff discovered the allegedly prohibited act or could, with
3 reasonable diligence, have discovered it.
4 (d) After such action has been brought, notwithstanding any provision
5 of law to the contrary, disclosure and related proceedings shall not be
6 stayed during the pendency of any motion to dismiss, unless the court so
7 directs.
8 § 3. Section 353 of the general business law is amended by adding a
9 new subdivision 4 to read as follows:
10 4. Nothing in this article shall preempt any purchaser or seller of
11 securities or commodities from bringing any common law claims concerning
12 any alleged deception, misrepresentation, concealment, suppression,
13 fraud, false pretense or false promise made in connection with the sale
14 or purchase of such securities or commodities as described in section
15 three hundred fifty-two of this article.
16 § 4. This act shall take effect immediately and shall apply to causes
17 of action accruing and actions pending before, on, or after its effec-
18 tive date.
