S-3520.3 _______________________________________________
SENATE BILL 6528
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State of Washington 55th Legislature 1998 Regular Session
By Senators West and Finkbeiner
Read first time 01/21/98. Referred to Committee on Law & Justice.
AN ACT Relating to securities litigation; and adding a new section to chapter 21.20 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 21.20 RCW to read as follows:
(1) No private civil action based upon the statutory or common law of this state or any of its political subdivisions may be maintained in any state court by any private party alleging:
(a) An untrue statement or omission in connection with the purchase or sale of any covered security; or
(b) That the defendant used or employed any manipulative or deceptive device or contrivance in connection with the purchase or sale of any covered security.
(2) For purposes of this section, a security is a "covered security" if such security is:
(a) Listed, or authorized for listing, on the New York Stock Exchange or the American Stock Exchange, or listed on the National Market System of the NASDAQ Stock Market, or any successor to such entities;
(b) Listed, or authorized for listing, on a national securities exchange, or tier or segment thereof, that has listing standards that the federal securities and exchange commission determines by rule, on its own initiative or on the basis of a petition, are substantially similar to the listing standards applicable to securities described in (a) of this subsection; or
(c) A security of the same issuer that is equal in seniority or that is a senior security to a security described in (a) or (b) of this subsection.
(3) Any action subject to subsection (1) of this section shall be removable to the federal district court for the district in which the action is pending and shall be subject to subsection (1) of this section.
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