Mutual Fund Litigation Reform Act
This bill specifies burden-of-proof and complaint requirements with respect to certain actions for breach of fiduciary duty against an investment adviser. Specifically, complaints must state certain facts with particularity, and a security holder has the burden of proving a breach of fiduciary duty by clear and convincing evidence.
To amend the Investment Company Act of 1940 to provide complaint and 
    burden of proof requirements for certain actions for breach of 
                            fiduciary duty.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mutual Fund Litigation Reform Act''.

SEC. 2. COMPLAINT AND BURDEN OF PROOF REQUIREMENTS FOR CERTAIN ACTIONS 
              FOR BREACH OF FIDUCIARY DUTY.

    Section 36(b) of the Investment Company Act of 1940 (15 U.S.C. 80a-
35(b)) is amended by adding at the end the following:
            ``(7) In any such action brought by a security holder of a 
        registered investment company on behalf of such company--
                    ``(A) the complaint shall state with particularity 
                all facts establishing a breach of fiduciary duty, and, 
                if an allegation of any such facts is based on 
                information and belief, the complaint shall state with 
                particularity all facts on which that belief is formed; 
                and
                    ``(B) such security holder shall have the burden of 
                proving a breach of fiduciary duty by clear and 
                convincing evidence.''.
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Mutual Fund Litigation Reform Act
To amend the Investment Company Act of 1940 to provide complaint and burden of proof requirements for certain actions for breach of fiduciary duty.
Mutual Fund Litigation Reform Act
Rep. Emmer, Tom