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Bill

HB 1744

Relating to the personal liability of control persons and material aiders under the Texas Securities Act; excluding claims from proportionate responsibility under Chapter 33 of the Texas Civil Practice and Remedies Code.

89th Legislature (2025) Introduced by Andy Hopper and 5 co-sponsors

HB 1744 removes proportionate liability protections for securities control persons and material aiders in Texas, exposing them to potentially full liability for violations.

Referred to Pensions, Investments & Financial Services
#civilremedies&liabilities(i0065) #financial--general(i0365)
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Bill Summary · HB 1744

Legislative bill overview

HB 1744 modifies liability protections for certain individuals involved in securities violations under Texas law. Specifically, it excludes claims against "control persons" and "material aiders" from the proportionate responsibility framework in Texas law, meaning these defendants could potentially face full liability rather than liability proportional to their degree of fault.

Why is this important

This change affects how securities fraud cases are litigated in Texas and could significantly impact liability exposure for corporate officers, directors, and advisors who are found to have control over or substantially assisted in securities violations. It potentially increases financial consequences for those parties while potentially shifting litigation strategy and settlement dynamics in securities disputes.

Potential points of contention

  • Business community concerns: Corporate defendants and their insurers may argue this removes important fairness protections that allow liability to match actual culpability, potentially making Texas less attractive for business operations
  • Investor protection vs. proportionality: Proponents likely argue it strengthens investor protections by preventing high-level wrongdoers from escaping full accountability, while critics contend proportionate liability is a fundamental fairness principle
  • Scope ambiguity: The definitions of "control person" and "material aider" may create uncertainty about who qualifies, potentially leading to costly litigation over liability status itself rather than actual damages

Compiled from official sources — confirm details with the bill’s official record.

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