Legislation is pending in the New York State Legislature which would establish a private right of action for certain institutional investors to enforce the Martin Act, the state's securities law.

The Martin Act provides broad enforcement authority to the New York State Attorney General but, according to the New York Court of Appeals, preempts civil action by private investors. However that premise has recently been challenged and if New York's highest court  rules against preemption it could spark a number of claims from private investors in the New York State courts.

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