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N.Y.: A Martin Act private right of action?



Tiger Joyce of ATRA sounds the alarm in the Metropolitan Corporate Counsel, as part of a roundup on legislative proposals being advanced by plaintiff's lawyers around the fifty states:

Arguably the most onerous of several such bills are A. 8646 and S. 5768, companion bills still pending in respective Assembly and Senate committees at press time. The legislation would create a new private right of action under the state's securities law known as the Martin Act. Currently, only the state attorney general can bring lawsuits against mutual funds and other such financial entities for acts of negligence. This mind-boggling proposal would increase the statute of limitations to six years from the date of discovery but would not require plaintiffs to show "reliance" on the defendants' conduct.

The bill has been introduced by Assemblyman Richard Brodsky of Westchester County. Earlier on the notoriously broad Martin Act here and here.

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Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.