Page:United States Statutes at Large Volume 109 Part 1.djvu/774

 109 STAT. 758 PUBLIC LAW 104-67—DEC. 22, 1995 this Act are sufficient to protect their investments from such Utigation; and Reports. (3) if SO, submit to the Congress a report containing recommendations on protections from securities fraud and abusive or unnecessary securities fraud litigation that the Commission determines to be appropriate to thoroughly protect such investors, (b) DEFINITIONS.—For purposes of this section— (1) the term "qualified retirement plan" has the same meaning as in section 4974(c) of the Internal Revenue Code of 1986; and (2) the term "senior citizen" means an individual who is 62 years of age or older as of the date of the securities transaction at issue. SEC. 107. AMENDMENT TO RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT. Section 1964(c) of title 18, United States Code, is amended by inserting before the period ", except that no person may rely upon any conduct that would have been actionable as fraud in the purchase or sale of securities to establish a violation of section 1962. The exception contained in the preceding sentence does not apply to an action against any person that is criminally convicted in connection with the fraud, in which case the statute of limitations shall start to run on the date on which the conviction becomes final". 15 USC 111 note. SEC. 108. APPLICABILITY. The amendments made by this title shall not affect or apply to any private action arising under title I of the Securities Exchange Act of 1934 or title I of the Securities Act of 1933, commenced before and pending on the date of enactment of this Act. TITLE II—REDUCTION OF COERCIVE SETTLEMENTS SEC. 201. PROPORTIONATE LIABILITY. (a) AMENDMENT TO SECURITIES AND EXCHANGE ACT OF 1934. — Section 2 ID of the Securities Exchange Act of 1934 (as added 15 USC 78U-4. by this Act) is amended by adding at the end the following new subsection: " (g) PROPORTIONATE LIABILITY.— "(1) APPLICABILITY. —Nothing in this subsection shall be construed to create, affect, or in any manner modify, the standard for liability associated with any action arising under the securities laws. " (2) LIABILITY FOR DAMAGES. — "(A) JOINT AND SEVERAL LIABILITY.— Any covered person against whom a final judgment is entered in a private action shall be liable for damages jointly and severally only if the trier of fact specifically determines that such covered person knowingly committed a violation of the securities laws. " (B) PROPORTIONATE LIABILITY. — "(i) IN GENERAL.— Except as provided in paragraph (1), a covered person against whom a final judgment

�