Bill Text: NY A05828 | 2019-2020 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to codes [A05828 Detail]

Download: New_York-2019-A05828-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5828
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 19, 2019
                                       ___________
        Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
          on Codes
        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.
    22    (c)  No  such  action may be brought more than six years from the time
    23  the plaintiff discovered the allegedly prohibited  act  or  could,  with
    24  reasonable diligence, have discovered it.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09160-01-9

        A. 5828                             2
     1    (d)  After such action has been brought, notwithstanding any provision
     2  of law to the contrary, disclosure and related proceedings shall not  be
     3  stayed during the pendency of any motion to dismiss, unless the court so
     4  directs.
     5    §  3.  Section  353 of the general business law is amended by adding a
     6  new subdivision 5 to read as follows:
     7    5. Nothing in this article shall preempt any purchaser  or  seller  of
     8  securities or commodities from bringing any common law claims concerning
     9  any  alleged  deception,  misrepresentation,  concealment,  suppression,
    10  fraud, false pretense or false promise made in connection with the  sale
    11  or  purchase  of  such securities or commodities as described in section
    12  three hundred fifty-two of this article.
    13    § 4. This act shall take effect immediately and shall apply to  causes
    14  of  action  accruing and actions pending before, on, or after its effec-
    15  tive date.
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