Securities Litigation: The 1977 Modernization of Section 33 of The Texas Securities Act

This article reviews and analyzes the 1977 revision of section 33 of the Texas Securities Act. The first section discusses the background and context of section 33. Section two analyzes the 1977 revisions to section 33. Part A of section two discusses liability issues under the statute, explaining that the number of liabilities has been substantially enlarged. Part B of section two discusses procedural and remedial provisions of the statute, explaining that the rights of parties have been far more comprehensively defined and more evenly balanced as between plaintiffs and defendants. The article concludes by noting that the 1977 revision of section 33 represents extensive modernization and improvement in the statutory rights of action under the Texas Securities Act. While acknowledging a few problems that remain in the revised section of 33 due to the complex drafting process that led to the 1977 revisions, the article posits that the 1977 revision of section 33 is a major improvement in the quality of Texas securities litigation law.