Attorneys\u27 Fees. Shareholder Actions. Class Actions.

ATTORNEYS\u27 FEES. SHAREHOLDER ACTIONS. CLASS ACTIONS. INITIATIVE STATUTE. Requires losing party to pay winning party\u27s reasonable attorneys fees and expenses in shareholder actions against corporations and in class actions based on securities law violations. Payment by member of losing party not required if position was substantially justified and payment would be unjust. Court may require losing party\u27s attorney to pay. After hearing, court may require plaintiff to furnish bond for defendant\u27s estimated fees and expenses, unless plaintiff owns or traded at least 5% of shares. Plaintiff\u27s attorney may agree to furnish bond and pay defendant\u27s fees and expenses for plaintiff. Summary by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The fiscal impact of this measure on state and local governments is unknown. It could result in either net savings or costs, depending largely on how attorneys and their clients respond