NJ Bill Would Punish Shareholders For Frivolous Suits

Law360, New York (June 18, 2012, 7:52 PM EDT) -- Shareholders filing frivolous class actions against New Jersey firms could be on the hook for defense expenses under a bill introduced in the legislature Monday that is designed to rein in baseless suits and make the state more attractive to businesses.

Among the key components of the bill, sponsored by Assemblyman Patrick J Diegnan Jr., D-Middlesex, is a provision that would allow a court to order a plaintiff to pay any defendant’s expenses incurred in defending a shareholder derivative proceeding if it finds that the proceeding...
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