Judge Crotty ruled yesterday that a proposed new class representative’s claims against Barclays (concerning the sale of American Depository Shares from 2006-2008) were barred by the Securities Act’s statute of repose, and thus untimely. The original class representative died during the litigation. The plaintiffs argued that the claims of the replacement plaintiff related back under
Statutes of Limitations
Judge Swain, Based on “Implicit” Overruling of Second Circuit, Rules 3-Year Limit to Sue Over False Securities Offerings Is Not Subject to “Extender” Law
By Charles Michael on
In an opinion today, Judge Swain ruled Section 13 of the Securities Act, which states that no action may be brought “more than three years after the security was bona fide offered to the public” was not extended by the so-called “FDIC Extender Provision” of the Financial Institutions Reform, Recovery, and Enforcement Act (or…
In CDO Case, Judge Forrest Rules That New, Helpful Facts Cannot Revive Expired Claims
By Charles Michael on
In an opinion today, Judge Forrest dismissed as untimely claims by a Korean bank, Woori bank, against Citi arising from Woori’s investment in Citi-sponsored CDOs. Woori argued that it did not have the facts for its claims until the Financial Crisis Inquiry Commission Report in 2011, but Judge Forrest — echoing a similar decision by Judge Marrero in a similar suit Woori filed against Merrill Lynch (see our post here) — ruled that the underlying facts were known well before then. Woori alleged one category of facts, relating to the “Class V CDO,” that were not in the Commission report and not at issue in the prior ruling from Judge Marrero, but Judge Forrest ruled that those allegations could not revive an otherwise expired claim:
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Judge Sullivan Denies SEC Defendants’ Motion to Delay Depositions Until Criminal Exposure Expires
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Supreme Court Agrees With Judge Batts That SEC’s Five-Year Statute of Limitations Begins When Fraud is Complete, Not When Discovered
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Judge Sweet Dismisses “Magnetar” Suit Over CDO Allegedly Designed to Fail Because It Was Filed “Exactly One Month Too Late”
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Judge Marrero Dismisses CDO Case as Time-Barred, Concludes that Facts Were Available Long Before Government’s FCIC Report
By Charles Michael on
In a decision yesterday, Judge Marrero concluded that claims by Korea’s Woori Bank against Merrill Lynch over a failed CDO investment were time-barred. Judge Marrero rejected Woori’s argument that it lacked sufficient information to bring suit before the publication of a report from the Financial Crisis Inquiry Commission (“FCIC”):
Continue Reading Judge Marrero Dismisses CDO Case as Time-Barred, Concludes that Facts Were Available Long Before Government’s FCIC Report
Supreme Court to Review Southern District Case Concerning Statute of Limitations in SEC Actions
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