California Proposition 202 Holds Lead; AEA Says Companion Legislation, Proposition 201, Also Needed.SANTA CLARA, Calif.--(BUSINESS WIRE)--March 26, 1996--The American Electronics Association The American Electronics Association (now known as AeA) is a nationwide non-profit trade association that represents all segments of the technology industry in the United States. (AEA AEA Atomic Energy Authority AEA n abbr (BRIT) (= Atomic Energy Authority) → consejo de energía nuclear; (BRIT) (SCOL) (= Advanced Extension Award) → ) said today that it applauds the voters of California for the apparent passage of Proposition 202, the Lawyer Contingent Fee Limitation initiative. The premier high tech trade group said it was disappointed that the initiative's companion, Proposition 201, Shareholder Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform initiative, seems to be failing. Both are needed to effectively strike a blow against predators who bring "strike" suits against high-tech companies. Brought by specialty lawyers, these shareholder "strike" suits coerce companies into settling lawsuits rather than reaching a fair decision via the legal process, because the time and cost of such litigation often makes settlement the more attractive choice. Proposition 201 would help remedy this legal loophole by requiring the losing party in any securities class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax brought under California law to pay the winner's attorney's fees and other expenses. Proposition 202 will limit contingent attorneys' fees to 15 percent of any earlier settlement offer. George Sollman, AEA Vice Chairman and President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Centigram cen·ti·gram n. A metric unit of mass equal to one hundredth (10-2) of a gram. centigram one-hundredth of a gram; abbreviated cg. Communications Corp., said, "Proposition 202 is just half the legislation needed to prevent the unfair and unfounded lawsuits that have debilitated de·bil·i·tat·ed adj. Showing impairment of energy or strength; enfeebled. See Synonyms at weak. Adj. 1. debilitated - lacking strength or vigor asthenic, enervated, adynamic high tech firms throughout the state. We hope to re-address the need for Proposition 201 later this year." William T. Archey, AEA President and CEO, said the initiatives complement a recently passed federal law which curbs predatory "strike" lawsuits in Federal Courts. "Proposition 202 is extremely important for high-tech companies -- the leading growth industry in this state, and we anticipate it will pass. However, Proposition 201 would give high tech firms the full protection against these unfair and unfounded lawsuits that is required. "AEA's member companies have led the war on unfair manipulation of the legal system at both the federal and state level," Archey concluded. The American Electronics Association is the largest technology trade group in the country, representing more than 3,000 U.S.-based companies. Member firms span the broad technology spectrum from semiconductors and software to mainframe computers and telecommunications systems. For more than 50 years, AEA has been the accepted voice of the U.S. electronics and information technology industry. CONTACT: John Hatch, 408/987-4232 |
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