,,ii #aacth ,,congress #ast ,session ,s4 #feb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bb1 #bjac ,mr4 ,cornyn introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to protect investors by fostering transparency and accountability of attorneys in private securities litigation4 #a4 ,short title ,this ,act may be cited as the ,securities ,litigation ,attorney ,accountability and ,transparency ,act4 #b4 ,disclosures of payments1 fee arrangements1 contributions1 and other potential conflicts of interest between plaintiff and attorneys 7a7 ,securities ,exchange ,act of #aicd ,section #ba;,d7a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghu-#d7;a77 is amended by adding at the end the following3 7#aj7 ,disclosures regarding payments 7,a7 ,sworn certifications required 7i7 ,in general ,in any private action arising under this title1 each plaintiff and any attorney for such plaintiff shall provide sworn certifications1 which shall-- 7,i7 be personally signed by such plaintiff and each such attorney1 respectively2 7,,ii7 be filed with the complaint2 and 7,,iii7 identify any direct or indirect payment1 or promise of any payment1 by such attorney1 or any person affiliated with such attorney1 to such plaintiff1 or any person affiliated with such plaintiff1 beyond the pro rata share of any recovery received by the plaintiff1 except as ordered or approved by the court in accordance with paragraph 7#d74 7ii7 ,court actions ,upon disclosure of any payment or promise of payment described in clause 7i71 the court shall disqualify the attorney from representing the plaintiff4 7,b7 ,definition ,for purposes of this paragraph1 the term payment includes the transfer of money and any other thing of value1 including the provision of services1 other than representation of the plaintiff in the private action arising under this title4 7#aa7 ,disclosures regarding legal representations 7,a7 ,in general ,in any private action arising under this title1 each plaintiff and any attorney for such plaintiff shall provide sworn certifications1 which shall-- 7i7 be personally signed by such plaintiff and each such attorney1 respectively2 7ii7 be filed with the complaint2 and 7iii7 identify the nature and terms of any legal representation provided by such attorney1 or any person affiliated with such attorney1 to such plaintiff1 or any person affiliated with such plaintiff1 other than the representation of the plaintiff in the private action arising under this title4 7,b7 ,court actions ,the court-- 7i7 may allow certifications under subparagraph 7,a7 to be made under seal2 7ii7 shall review such certifications to determine whether cause exists to believe that the nature or terms of the fee arrangement for any other matter influenced the selection and retention of counsel in the private action arising under this title2 7iii7 may conduct a factual inquiry or refer the question to a magistrate1 if the court makes a finding described in clause 7ii72 and 7iv7 shall disqualify the attorney from representing the plaintiff in any action arising under this title1 if the court finds1 after such inquiry1 that the nature or terms of the fee arrangement for any other matter influenced the selection and retention of counsel in any such action4 7#ab7 ,disclosures regarding contributions ,in any private action arising under this title1 each plaintiff and any attorney for such plaintiff shall provide sworn certifications1 which shall-- 7,a7 be personally signed by such plaintiff and each such attorney1 respectively2 7,b7 be filed with the complaint2 and 7,c7 identify any contribution made during the #e-year period preceding the date of filing of the complaint by such attorney1 any person affiliated with such attorney1 or any political action committee controlled by such attorney1 to any elected official with real or apparent authority to retain counsel for such plaintiff or to select or appoint1 influence the selection or appointment of1 or oversee any individual or group of individuals with that authority4 4 7b7 ,securities ,act of #aicc ,section #bg7;a7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggz-#a7;a77 is amended by adding at the end the following3 7#i7 ,disclosures regarding payments 7,a7 ,sworn certifications required 7i7 ,in general ,in any private action arising under this title1 each plaintiff and any attorney for such plaintiff shall provide sworn certifications1 which shall-- 7,i7 be personally signed by such plaintiff and each such attorney1 respectively2 7,,ii7 be filed with the complaint2 and 7,,iii7 identify any direct or indirect payment1 or promise of any payment1 by such attorney1 or any person affiliated with such attorney1 to such plaintiff1 or any person affiliated with such plaintiff1 beyond the pro rata share of any recovery received by the plaintiff1 except as ordered or approved by the court in accordance with paragraph 7#d74 7ii7 ,court actions ,upon disclosure of any payment or promise of payment described in clause 7i71 the court shall disqualify the attorney from representing the plaintiff4 7,b7 ,definition ,for purposes of this paragraph1 the term payment shall include the transfer of money and any other thing of value1 including the provision of services1 other than representation of the plaintiff in the private action arising under this title4 7#aj7 ,disclosures regarding legal representations 7,a7 ,in general ,in any private action arising under this title1 each plaintiff and any attorney for such plaintiff shall provide sworn certifications1 which shall-- 7i7 be personally signed by such plaintiff and each such attorney1 respectively2 7ii7 be filed with the complaint2 and 7iii7 identify the nature and terms of any legal representation provided by such attorney1 or any person affiliated with such attorney1 to such plaintiff1 or any person affiliated with such plaintiff1 other than the representation of the plaintiff in the private action arising under this title4 7,b7 ,court actions ,the court-- 7i7 may allow certifications under subparagraph 7,a7 to be made under seal2 7ii7 shall review such certifications to determine whether cause exists to believe that the nature or terms of the fee arrangement for any other matter influenced the selection and retention of counsel in the private action arising under this title2 7iii7 may conduct a factual inquiry or refer the question to a magistrate1 if the court makes a finding described in clause 7ii72 and 7iv7 shall disqualify the attorney from representing the plaintiff in any action arising under this title1 if the court finds1 after such inquiry1 that the nature or terms of the fee arrangement for any other matter influenced the selection and retention of counsel in the private action arising under this title4 7#aa7 ,disclosures regarding contributions ,in any private action arising under this title1 each plaintiff and any attorney for such plaintiff shall provide sworn certifications1 which shall-- 7,a7 be personally signed by such plaintiff and each such attorney1 respectively2 7,b7 be filed with the complaint2 and 7,c7 identify any contribution made during the #e-year period preceding the date of filing of the complaint by such attorney1 any person affiliated with such attorney1 or any political action committee controlled by such attorney1 to any elected official with real or apparent authority to retain counsel for such plaintiff or to select or appoint1 influence the selection or appointment of1 or oversee any individual or group of individuals with that authority4 4 #c4 ,selection of lead counsel 7a7 ,securities ,exchange ,act of #aicd ,section #ba;,d7a77#c77;,b77v7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghu-#d7;a77#c77;,b77v77 is amended by adding at the end the following3 ,in exercising the discretion of the court over the approval of lead counsel1 the court shall employ a competitive bidding process as one of the criteria in the selection and retention of counsel for the most adequate plaintiff1 unless the court determines on the record that such a process is not feasible44 7b7 ,securities ,act of #aicc ,section #bg7;a77#c77;,b77v7 of the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #ggz-#a7;a77#c77;,b77v77 is amended by adding at the end the following3 ,in exercising the discretion of the court over the approval of lead counsel1 the court shall employ a competitive bidding process as one of the criteria in the selection and retention of counsel for the most adequate plaintiff1 unless the court determines on the record that such a process is not feasible44 #d4 ,study of average hourly fees in securities class actions 7a7 ,study and review required ,the ,comptroller ,general of the ,united ,states 7in this section referred to as the ,comptroller ,general7 shall conduct a study and review of fee awards to lead counsel in securities class actions during the #g-year period preceding the date of enactment of this ,act1 to determine the effective average hourly rate for lead counsel in such actions4 ,such study and review shall also consider lead counsel perquisites1 including travel and accommodation4 7b7 ,report required ,not later than #a year after the date of enactment of this ,act1 the ,comptroller ,general shall submit a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives on the results of the study and review required by this section4 ,the ,comptroller ,general shall submit an updated report every #c years thereafter4 7c7 ,definition ,for purposes of this section1 the term securities class action means a private class action arising under the ,securities ,act of #aicc 7#ae ,u4,s4,c4 #gg et seq47 or the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh et seq47 that is brought as a plaintiff class action pursuant to the ,federal ,rules of ,civil ,procedure4