December 20, 1995 in Nation/World

Clinton Vetoes Limits On Fraud Lawsuits

Associated Press

President Clinton, in a surprise blow to Silicon Valley allies, vetoed a bill Tuesday night that would have restricted securities fraud class actions by investors.

White House spokesman David Johnson said the bill would have erected unacceptable procedural hurdles for bringing security fraud lawsuits.

It was a no-win decision for Clinton.

High-technology companies and accounting firms had lobbied hard for the bill. And many high-tech executives are major political contributors crucial to Clinton’s reelection strategy, particularly in California.

But Clinton listened to traditional Democratic constituencies who described the bill, initially part of the Republicans’ “Contract With America,” as a blow to investor rights.

© Copyright 1995 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Get stories like this in a free daily email

Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus