SECURITIES

Agreement Reached on Class-Action Reform: House Republicans and conservative Democrats reached a tentative compromise Thursday on legislation to reduce what they view as frivolous class-action lawsuits alleging securities fraud. The original Republican plan, drafted by Rep. Christopher Cox (R-Newport Beach) as part of the GOP “contract with America,” would have required losers in the securities fraud cases to pay the full legal costs. But this drew objections as being unduly harsh in deterring small investors from suing if they felt they had been defrauded. Under a compromise, Cox said he will offer an amended version giving judges in securities cases the power to decide if the complaint was “substantial.”