CA2 (12.6.04)

Resolving a nagging question in securities fraud litigation, the Second Circuit today held that the Sarbanes-Oxley Act's statute of limitations provision does not revive time-barred claims.  Under SOx, a plaintiff must file a securities fraud suit within two years of discovering the violation or within five years of the actual violation, whichever is longer.  Previously, the time limit was one year, three years.  The Act does not explicitly say whether these new time-limits apply retroactively, so the question remained:  Are claims that expired under the old 1/3 statute of limitations, but which are timely under the new 2/5 stuate of limitations, viable?  The Second Circuit today answered that question in the negative.  That sound you heard was all of Wall Street collectively letting out a sigh of relief.  (The case is In re Enterprise Mortgage Acceptance Co. Securities Litigation, although the decision is actually in a bunch of unrelated, unconsolidated cases decided together because they present the same issue).

For more details on this issue, and updates on the Eleventh Circuit's progress with the same issues, check out the excellent 10b-5 daily.

In other news, the CA2 affirmed in part and reversed in part a sua sponte dismissal of a pro se prisoner's free speech, free exercise. equal protection, due process, and RLIUPA claims.  (Shakur v. Selsky).

UPDATE:  Check out the 10b-5 daily's coverage of Enterprise Mortgage.

Comments

[Happy Fun Lawyer]

I confess to being computer-illiterate. Does anyone know what the bizarre trackbacks (I think that's what they're called) to this post mean?

[S.cuts]

The trackbacks are either trackback spam or someone screwing around a program that sounds out random or erroneous trackbacks.