Page:United States Statutes at Large Volume 112 Part 3.djvu/559

 PUBLIC LAW 105-271—OCT. 19, 1998 112 STAT. 2389 781(i)), or disclosures or writing that when made accompanied the solicitation of an offer or sale of securities. SEC. 4. PROTECTION FOR YEAR 2000 STATEMENTS. (a) EvTOENCE EXCLUSION.—No year 2000 readiness disclosure, in whole or in part, shall be admissible against the maker of that disclosure to prove the accuracy or truth of any year 2000 statement set forth in that disclosure, in any covered action brought by another party except that— (1) a year 2000 readiness disclosure may be admissible to serve as the basis for a claim for anticipatory breach, or repudiation of a contract, or a similar claim against the maker, to the extent provided by applicable law; and (2) the court in any covered action shall have discretion to limit application of this subsection in any case in which the court determines that the maker's use of the year 2000 readiness disclosure amounts to bad faith or fraud, or is otherwise beyond what is reasonable to achieve the purposes of this Act. (b) FALSE, MISLEADING AND INACCURATE YEAR 2000 STATE- MENTS. —Except as provided in subsection (c), in any covered action, to the extent that such action is based on an allegedly false, inaccurate, or misleading year 2000 statement, the maker of that year 2000 statement shall not be liable under Federal or State law with respect to that year 2000 statement unless the claimant establishes, in addition to all other requisite elements of the applicable action, by clear and convincing evidence, that— (1) the year 2000 statement was material; and (2)(A) to the extent the year 2000 statement was not a republication, that the maker made the year 2000 statement— (i) with actual knowledge that the year 2000 statement was false, inaccurate, or misleading; (ii) with intent to deceive or mislead; or (iii) with a reckless disregard as to the accuracy of the year 2000 statement; or (B) to the extent the year 2000 statement was a republication, that the maker of the republication made the year 2000 statement— (i) with actual knowledge that the year 2000 statement was false, inaccurate, or misleading; (ii) with intent to deceive or mislead; or (iii) without notice in that year 2000 statement that— (I) the maker has not verified the contents of the republication; or (II) the maker is not the source of the republication and the republication is based on information suppHed by another person or entity identified in that year 2000 statement or republication. (c) DEFAMATION OR SIMILAR CLAIMS. —In a covered action arising under any Federal or State law of defamation, trade disparagement, or a similar claim, to the extent such action is based on an allegedly false, inaccurate, or misleading year 2000 statement, the maker of that year 2000 statement shall not be liable with respect to that year 2000 statement, unless the claimant establishes by clear and convincing evidence, in addition to all other requisite elements of the applicable action, that the year 2000 statement

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