While investor relations executives were cheered last year by the override of President Clinton's veto of the Private Securities Litigation Reform Act of 1995 (PR NEWS, Jan. 1, 1996, p. 8), a ballot measure in California again is raising the threat of shareholder lawsuits, according to the National Investor Relations Institute (NIRI), Vienna, Va.
Proposition 211, an item on the Nov. 5 ballot in the nation's most-populous state, would ease the filing of lawsuits. It also would tilt the balance in favor of plaintiff's attorneys who sue claiming that corporate management has misled investors about earnings prospects and other material information, NIRI contends.
According to NIRI, the legislation could impact not only California-based companies, but also any company with shareholders in California. A group, Taxpayers Against Frivolous Lawsuits, is seeking corporate donations to fight the California initiative. For information about contribution procedures, call Anne LeGassick at 818/996-1045. (NIRI, 703/506-3570)