The Class Action Fairness Act applies some of the reform concepts in the PSLRA and SLUSA to all class actions. Notably, class actions meeting certain jurisdictional criteria would have to be heard in federal court. It is believed that Republicans have enough votes in the Senate to pass the bill, but Reuters reports that there is a disagreement over when it will reach the floor. The House passed its own version of the legislation almost a year ago.
Quote of note: “Republicans seeking curbs on what they call runaway litigation against business want to start debating the class action measure on June 1, when Senate Majority Leader Bill Frist has scheduled a vote on a motion to bring up the bill. . . . But Democratic aides predict Frist will not be able to get the 60 votes he needs to bring up the bill next Tuesday, because of the desire to resume debate on defense.”
The 10b-5 Daily 