A Collaboration with the University of Pittsburgh

Supreme Court to rule on statute of limitations in class actions

The US Supreme Court [official website] granted certiorari [order list, PDF] Monday in Public Employees' Retirement System of Mississippi v. IndyMac MBS, Inc. [docket; cert. petition, PDF] to rule on the statute of limitations in class action suits. In American Pipe & Construction Co. v. Utah (1974) [opinion] 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." Section 13 of the Securities Act of 1933 [text, PDF] provides that "[i]n no event shall" an action under § 11 of that Act "be brought ... more than three years after the security was bona fide offered to the public, or under [§ 12](a)(2) ... more than three years after the sale." The question presented is: "Does the filing of a putative class action serve, under the American Pipe rule, to satisfy the three-year time limitation in § 13 of the Securities Act with respect to the claims of putative class members?" The US Court of Appeals for the Second Circuit held [opinion] that "American Pipe's tolling rule does not apply to the three-year statute of repose in Section 13."

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.