Attorneys\u27 Fees. Shareholder Actions. Class Actions.

Requires losing party to pay winning party\u27s reasonable attorneys\u27 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 of Legislative Analyst\u27s Estimate of Net State and Local Government Fiscal Impact: Adoption of this measure would have unknown, but probably not significant, fiscal impact on state and local governments