A VETO IN VAIN

For the first time, Congress has defeated a veto by President Clinton. Friday morning, the Senate gathered a two-thirds majority (68-30) to reject the President's last-minute veto on Tuesday night of a bill that would restrict class-action security fraud lawsuits. The Senate action, which follows a similar House vote Wednesday, assures that the securities bill will become law. Republicans had spearheaded the push for veto-proof passage because the bill limits attorney fees and can force the losing party to pay fees and costs if the suit proves frivolous. Powerful leaders of high-technology firms backed the bill, one part of which shields executives from lawsuits if they make public statements, such as earnings projections, that later prove to be wrong. But Clinton, who yielded to intense lobbying from liberal Democrats, trial attorneys and consumer groups, said the legislation was too tough on plaintiffs and might restrict the rights of small shareholders to file legitimate lawsuits.