Inside the Courts: Supreme Court Agrees to Review American Pipe Tolling Issue
Jay B. Kasner
Skadden, Arps, Slate, Meagher & Flom LLP - New York Office
Matthew J. Matule
Skadden, Arps, Slate, Meagher & Flom LLP - Boston Office
Edward B. Micheletti
Skadden, Arps, Slate, Meagher & Flom LLP - Wilmington Office
Amy S. Park
Skadden, Arps, Slate, Meagher & Flom LLP - Palo Alto Office
Noelle M. Reed
Skadden, Arps, Slate, Meagher & Flom LLP - Houston Office
|March 12, 2014|
Previously published on March 10, 2014
This morning, the Supreme Court granted the writ of certiorari in Public Employees Retirement System of Mississippi v. IndyMacMBS, Inc. The petition raises an issue regarding the application of American Pipe tolling to claims brought under the Securities Act of 1933. In American Pipe & Construction Co. v. Utah, 414 U.S. 538 (1974), the Court held that “the commencement of a class action suspends the applicable statute of limitations as to all asserted members of the class who would have been parties had the suit been permitted to continue as a class action.” Id. at 554.
The question presented in IndyMac is whether, applying American Pipe tolling, the filing of a putative class action serves to satisfy the three-year period for filing a claim contained in Section 13 of the Securities Act of 1933. The decision below, in the United States Court of Appeals for the Second Circuit, held that Section 13 establishes a statute of repose, rather than a statute of limitations, and cannot be subject to American Pipe tolling.
The Supreme Court’s decision could have broad implications for the application of American Pipe tolling in securities actions.
The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
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