Page:United States Statutes at Large Volume 109 Part 1.djvu/761

 PUBLIC IJiW 104-67—DEC. 22, 1995 109 STAT. 745 "(bb) is subject to unique defenses that render such plaintiff incapable of adequately representing the class, "(iv) DISCOVERY.— For purposes of this subparagraph, discovery relating to whether a member or members of the purported plaintiff class is the most adequate plaintiff may be conducted by a plaintiff only if the plaintiff first demonstrates a reasonable basis for a finding that the presumptively most adequate plaintiff is incapable of adequately representing the class. "(v) SELECTION OF LEAD COUNSEL. —The most adequate plaintiff shall, subject to the approval of the court, select and retain counsel to represent the class, " (vi) RESTRICTIONS ON PROFESSIONAL PLAINTIFFS.— Except as the court may otherwise permit, consistent with the purposes of this section, a person may be a lead plaintiff, or an officer, director, or fiduciary of a lead plaintiff, in no more than 5 securities class actions brought as plaintiff class actions pursuant to the Federal Rules of Civil Procedure during any 3- year period. "(4) RECOVERY BY PLAINTIFFS. — The share of any final judgment or of any settlement that is awarded to a representative party serving on behalf of a class shall be equal, on a per share basis, to the portion of the final judgment or settlement awarded to all other members of the class. Nothing in this paragraph shall be construed to limit the award of reasonable costs and expenses (including lost wages) directly relating to the representation of the class to any representative party serving on behalf of a class. "(5) RESTRICTIONS ON SETTLEMENTS UNDER SEAL. —The terms and provisions of any settlement agreement of a class action shall not be filed under seal, except that on motion of any party to the settlement, the court may order filing under seal for those portions of a settlement agreement as to which good cause is shown for such filing under seal. For purposes of this paragraph, good cause shall exist only if publication of a term or provision of a settlement agreement would cause direct and substantial harm to any party. " (6) RESTRICTIONS ON PAYMENT OF ATTORNEYS' FEES AND EXPENSES.—Total attorneys' fees and expenses awarded by the court to counsel for the plaintiff class shall not exceed a reasonable percentage of the amount of any damages and prejudgment interest actually paid to the class. " (7) DISCLOSURE OF SETTLEMENT TERMS TO CLASS MEM- BERS.—Any proposed or final settlement agreement that is published or otherwise disseminated to the class shall include each of the following statements, along with a cover page summarizing the information contained in such statements: "(A) STATEMENT OF PLAINTIFF RECOVERY.— The amount of the settlement proposed to be distributed to the parties to the action, determined in the aggregate and on an average per share basis. " (B) STATEMENT OF POTENTIAL OUTCOME OF CASE.— " (i) AGREEMENT ON AMOUNT OF DAMAGES. — If the settling parties agree on the average amount of dam-

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