Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
The U.S. Supreme Court has agreed to decide a class-litigation timeliness issue that could revive a lawsuit against the underwriters of more than $31 billion in Lehman Brothers’ debt offerings ( Calif. Pub. Emp. Ret. Sys. v. ANZ Securities, Inc., U.S., No. 16-373, 1/13/17 ).
The justices will hear an appeal from the California Public Employees’ Retirement System on the applicability of “ American Pipe tolling” to a three-year time limit set out in 1933 Securities Act Section 13, with respect to the claims of presumed class members. The justices had decided to tackle the topic two years ago in an unrelated case, but the parties settled their differences before oral argument.
In American Pipe & Constr. Co. v. Utah, 414 U.S. 538 (1974), the high court ruled in an antitrust case that the commencement of a class action suspends the applicable statute of limitations as to all would-be class members.
The pension fund alleged in 2011 that the underwriters didn’t disclose risks related to Lehman investments in subprime mortgages in the years before the firm’s demise. The district court dismissed the claims as time-barred and the U.S. Court of Appeals for the Second Circuit affirmed. It said that the inapplicability of American Pipe tolling to a statute of repose “turns on the nature of the tolling rule and its ineffectiveness against statutes of repose, not on whether the named plaintiffs also have standing to assert claims on behalf of a class.” The decision conflicted with a Tenth Circuit ruling that a pending class action tolls the ‘33 Act’s statute of repose.
In its petition to the high court, CalPERS told the justices that its ’33 Act Section 11 claims would have been timely if the three-year statute of repose had been tolled by the filing of a class lawsuit based on the same alleged misconduct.
CalPERS is represented by Thomas C. Goldstein of Goldstein & Russell PC, Bethesda, Md. ANZ Securities is represented by Victor L. Hou of Cleary Gottlieb Steen & Hamilton LLP, New York.
To contact the reporter on this story: Antoinette Gartrell in Washington at firstname.lastname@example.org
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)