The proposed federal Class Action Fairness Act of 2004 (S. 2062) is the subject of this editorial today in the Fort Wayne Journal Gazette. A quote from the editorial:
The bill would nullify “sunshine” laws in 20 states, including Indiana, that ban secrecy in class-action lawsuits. The laws generally guarantee public access to legal settlements and court records, except those disclosing corporate trade secrets. Citizens would lose their right to learn of dangerous products, environmental hazards and other corporate misbehavior under a provision in the bill that would transfer most class action lawsuits from state to federal courts, where state sunshine laws don’t apply. Future class action lawsuits brought by pension funds, individual retirement account holders and retirees against companies accused of securities fraud – think Enron and WorldCom – would be closed to the public at the request of senior corporate management.For some background on the bill, see this 5/27/04 Reuters story. Some quotes:
The legislation would transfer most large class action lawsuits from state courts to federal courts, where experts say their chances of success are diminished. * * *Posted by Marcia Oddi at May 31, 2004 09:43 AMRepublicans seeking curbs on what they call runaway litigation against business want to start debating the class action measure on June 1, when Senate Majority Leader Bill Frist has scheduled a vote on a motion to bring up the bill.
Corporate interests have sought the legislation for years. Supporters think it has never come closer to passage than now, after a compromise in November won over three Democrats and put the overall number of backers at 62 in the 100-seat Senate.