Page:United States Statutes at Large Volume 124.djvu/1897

 124 STAT. 1871 PUBLIC LAW 111–203—JULY 21, 2010 of investors, may prescribe the form, content, time, and manner of delivery of any notice required under this paragraph.’’. SEC. 929Y. STUDY ON EXTRATERRITORIAL PRIVATE RIGHTS OF ACTION. (a) IN GENERAL.—The Securities and Exchange Commission of the United States shall solicit public comment and thereafter conduct a study to determine the extent to which private rights of action under the antifraud provisions of the Securities and Exchange Act of 1934 (15 U.S.C. 78u-4) should be extended to cover— (1) conduct within the United States that constitutes a significant step in the furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors; and (2) conduct occurring outside the United States that has a foreseeable substantial effect within the United States. (b) CONTENTS.—The study shall consider and analyze, among other things— (1) the scope of such a private right of action, including whether it should extend to all private actors or whether it should be more limited to extend just to institutional investors or otherwise; (2) what implications such a private right of action would have on international comity; (3) the economic costs and benefits of extending a private right of action for transnational securities frauds; and (4) whether a narrower extraterritorial standard should be adopted. (c) REPORT.—A report of the study shall be submitted and recommendations made to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House not later than 18 months after the date of enactment of this Act. SEC. 929Z. GAO STUDY ON SECURITIES LITIGATION. (a) STUDY.—The Comptroller General of the United States shall conduct a study on the impact of authorizing a private right of action against any person who aids or abets another person in violation of the securities laws. To the extent feasible, this study shall include— (1) a review of the role of secondary actors in companies issuance of securities; (2) the courts interpretation of the scope of liability for secondary actors under Federal securities laws after January 14, 2008; and (3) the types of lawsuits decided under the Private Securi- ties Litigation Act of 1995. (b) REPORT.—Not later than 1 year after the date of enactment of this Act, the Comptroller General shall submit a report to Con- gress on the findings of the study required under subsection (a). Public comment.