Merck: The Statute of Limitations in Securities Fraud Damage Suits

In a result joined by all of the justices, the Supreme Court affirmed the decision of the Third Circuit, concluding that plaintiffs' had timely filed a securities fraud suit against Merck & Co. Merck & Co. v. Reynolds , Case No. 08-905 S.Ct. (April 27, 2010). The case centers on alleged...

Duane Morris Alert: Two-Year Statute of Limitations for Federal Securities Fraud Claims Begins to Run When a Reasonably Diligent Plaintiff Would Have Discovered the Violations

In Strategic Diversity, Inc. v. Alchemix Corp. , an opinion marked for publication, the United States Court of Appeals for the Ninth Circuit held that for federal securities fraud claims, the statute of limitations begins to run when a reasonably diligent plaintiff would have discovered the underlying...

Supreme Court Fails to Decide Limitation Period for Section 16(b) Claims

The Supreme Court rejected the approaches of two Circuit Courts to tolling the limitation period for bringing an Exchange Act Section 16(b) claim while failing to decide if that period can be tolled. The High Court rejected the conclusion of the Ninth Circuit that the two year statute of limitations...

Alex Bahn Discusses the U.S. Supreme Court's Decision in Credit Suisse Securities (USA) LLC v. Simmonds

On this edition, Alex Bahn of Hogan Lovells discusses the Supreme Court's decision in Credit Suisse Securities (USA) LLC v. Simmonds, in which the Court addressed the scope of the statute of limitations under Section 16(b) of the Securities Exchange Act of 1934. He provides a brief overview of Section...

Supreme Court Rejects 9th Circuit Rule on Tolling for Short-Swing Trading Claims

by Joseph E. Bringman and Ronald Berenstain Perkins Coie experts on Credit Suisse Securities v. Simmonds: U.S. Supreme Court unanimously rejects the 9th Circuit's 30-year-old rule that tolls the statute of limitations for short-swing profit claims under Section 16(b) of the 1934 Act. Instead...

The New Term: The Supreme Court Faces Conflicting Currents In Securities Litigation

The first Monday in October is the opening day of the new Supreme Court term. In recent years the Court has heard a number of securities cases, considering issues regarding class certification in Erica P. John Fund v. Halliburton, 131 S. Ct. 2179 (2011), materiality in Matrixx Initiatives Inc. v. Siracusano...

Supreme Court Rejects SEC Effort to Extend Statute of Limitations

The Supreme Court rejected the SEC's effort to extend the five year statute of limitations for imposing a civil penalty by engrafting a discovery exception onto the statute. Chief Justice Roberts, writing for a unanimous Court, held that under Section 2462 of Title 28, the statute of limitations...

Time Limits on SEC Enforcement Actions: The Supreme Court Ruling in Gabelli v. SEC

Excerpt: The Supreme Court rejected the efforts of the Securities and Exchange Commission ("SEC") effort to extend the five-year statute of limitations for imposing a civil penalty by engrafting a discovery exception onto the statute. Chief Justice Roberts, writing for a unanimous Court...