ORS 59.137
Liability in connection with violation of ORS 59.135

  • damages
  • defense
  • attorney fees
  • limitations on proceeding

(1)

Any person who violates or materially aids in a violation of ORS 59.135 (Fraud and deceit with respect to securities or securities business) (1), (2) or (3) is liable to any purchaser or seller of the security for the actual damages caused by the violation, including the amount of any commission, fee or other remuneration paid, together with interest at the rate specified in ORS 82.010 (Legal rate of interest) for judgments for the payment of money, unless the person who materially aids in the violation sustains the burden of proof that the person did not know and, in the exercise of reasonable care, could not have known of the existence of the facts on which the liability is based.

(2)

Any person who directly or indirectly controls a person liable under subsection (1) of this section and every partner, limited liability company manager, including a member who is a manager, officer or director or a person occupying a status or performing functions of a person liable under subsection (1) of this section, is jointly and severally liable to the same extent as a person liable under subsection (1) of this section, unless the person who may be liable under this subsection sustains the burden of proof that the person did not know and, in the exercise of reasonable care, could not have known of the existence of the facts on which the liability is based.

(3)

Any person held liable under this section is entitled to contribution from those persons jointly and severally liable with that person.

(4)

Except as provided in subsection (5) of this section, the court may award reasonable attorney fees to the prevailing party in an action under this section.

(5)

The court may not award attorney fees to a prevailing defendant under the provisions of subsection (4) of this section if the action under this section is maintained as a class action pursuant to ORCP 32.

(6)

An action or suit may be commenced under this section within the later of:

(a)

Three years after the date of the purchase or sale of a security to which the action or suit relates; or

(b)

Two years after the person bringing the action or suit discovered or should have discovered the facts on which the action or suit is based.

(7)

Failure to commence an action or suit under this section on a timely basis is an affirmative defense. [2003 c.631 §4; 2003 c.786 §3]

Source: Section 59.137 — Liability in connection with violation of ORS 59.135; damages; defense; attorney fees; limitations on proceeding, https://www.­oregonlegislature.­gov/bills_laws/ors/ors059.­html.

Notes of Decisions

Where stock purchaser is required to establish reliance element under this section, plaintiff who purchases stock on efficient, open market may establish reliance element by means of rebuttable presumption available under fraud-on-market-doctrine which is incorporated in this section. State v. Marsh & McLennan Companies, Inc., 353 Or 1, 292 P3d 525 (2012)

Because violations of ORS 59.135 subsections (1), (2) or (3) refer to acts that are committed with “scienter,” plaintiff that brings action under this section, must prove that defendants acted with guilty state of mind when defendants made misrepresentations on which plaintiff relied. State v. Marsh & McLennan Companies, Inc., 353 Or 1, 292 P3d 525 (2012)

59.005
Short title 59.015
Definitions for Oregon Securities Law 59.025
Securities exempt from registration 59.035
Transactions exempt from registration 59.045
Authority of director to deny, withdraw or condition exemptions 59.049
Federal covered securities exempt from registration 59.051
Statutory references to federal law 59.055
Conditions of offer and sale of securities 59.065
Registration procedures 59.070
Amended registration application 59.075
Registration by director 59.085
Conditions imposed on registration 59.095
Approval of plan to issue securities in exchange for other securities, claims or property 59.105
Denial, suspension or revocation of registration 59.115
Liability in connection with sale or successful solicitation of sale of securities 59.125
Effect of notice of offer to repay purchaser 59.127
Liability in connection with purchase or successful solicitation of purchase of securities 59.131
Effect of notice of intent to return unlawfully purchased security 59.135
Fraud and deceit with respect to securities or securities business 59.137
Liability in connection with violation of ORS 59.135 59.145
Effect of notice filing, registration or license 59.155
Director is agent for service of process 59.165
Licensing of broker-dealers, investment advisers and salespersons required 59.175
Procedures for notice filing and licensing 59.185
Expiration of license 59.195
Licensees to keep records 59.205
Grounds for denying, suspending, revoking or imposing condition or restriction on license 59.215
Action against applicant or licensee for act or omission of associate 59.225
Cancellation of license or application 59.235
General supervision over persons dealing in securities 59.245
Investigations 59.255
Enjoining violations 59.265
Procedure when assets or capital of broker-dealer or investment adviser found impaired 59.275
Burden of proof 59.285
Rules 59.295
Notice of orders 59.305
Judicial review of orders 59.315
Oaths and subpoenas in proceedings before director 59.325
Certified copies of documents 59.331
Scope of Attorney General powers 59.335
Application of certain sections 59.345
When offer to sell or buy is made in this state 59.350
Treatment of certain transactions 59.355
Corporations subject to other laws 59.365
Common-law and statutory rights not limited 59.370
Limitation on liability for good faith act or omission 59.451
Prohibition against filing false statement by person under investigation or examination 59.480
Definitions for ORS 59.480 to 59.505 59.485
Required reporting by certain securities professionals of suspected financial exploitation 59.490
Notifications to third parties 59.495
Delay of disbursements 59.500
Limitation on liability 59.505
Provision of records to law enforcement and certain state agencies 59.535
Definitions for ORS 59.535 to 59.585 59.540
Registration in beneficiary form 59.545
Registration in beneficiary form 59.550
Origination of registration in beneficiary form 59.555
Form of registration in beneficiary form 59.560
Effect of registration in beneficiary form 59.565
Ownership on death of owner 59.570
Protection of registering entity 59.575
Nontestamentary transfer on death 59.580
Terms, conditions and forms for registration 59.585
Short title 59.710
Definitions for ORS 59.710 to 59.830 59.720
Application of ORS 59.710 to 59.830 to real estate contracts and brokers 59.730
Making contract involving securities without intending a bona fide sale or purchase 59.740
Conducting bucket shop or repeatedly making forbidden contracts 59.750
Receipt or communication of prices for purpose of forbidden contract 59.760
Reporting false sale of securities with intent to deceive 59.770
Manipulating market by pretended sales 59.780
Broker’s trading against customer’s order 59.790
Insolvent broker-dealer receiving securities from customer 59.800
Pledge or sale by broker-dealer of customer’s securities 59.810
Delivery to customer of true statement of purchase or sale made by broker 59.820
Actions against corporation for second violation 59.830
Self-incrimination by witness 59.991
Criminal penalties for ORS 59.005 to 59.505 and 59.710 to 59.830 59.995
Civil penalties for ORS 59.005 to 59.505 and 59.710 to 59.830
Green check means up to date. Up to date

Current through early 2024

§ 59.137’s source at oregon​.gov