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Ultimately, the only real, effective solution is for proponents of "reform" to attempt to win changes, such as safe harbor protections and a discovery stay, in state laws. This has the benefit of offering a narrowly crafted solution to a narrowly defined problem. It also preserves protections, such as longer statutes of limitations and aiding and abetting liability, where they exist in state law. Finally, while attacking an issue one state at a time can be cumbersome, this is less of a problem here, since roughly 60 percent of state cases are filed in one state, and that state has already set up a legislative commission to identify problems with its laws. (20) While we continue to question whether these changes are warranted, based on the available evidence, this approach would be far less harmful to investors than the sweeping, but ultimately ineffective, state preemption proposed in S. 1260.
Conclusion
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