Strict 2-Year Limit For Derivative Claims Set By Supreme Court

Law360, New York (March 26, 2012, 1:06 PM EDT) -- The U.S. Supreme Court ruled Monday that the two-year clock on certain insider trading claims begins to run as soon as the fraud is discovered or should have been discovered, not after corporate insiders disclose potentially illicit trades, as the Ninth Circuit previously held.

In a unanimous decision, the high court reversed a ruling by the lower court, which revived a host of suits filed in 2007 related to initial public offerings made in the 1990s, and asserted that equitable tolling principles apply to the statute...
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