Gabelli And For Whom The Clock Tolls

Law360, New York (March 5, 2013, 11:03 AM EST) -- In Gabelli v. SEC, the U.S. Supreme Court unanimously slammed the door on the “discovery rule” in government enforcement actions subject to 28 U.S.C. § 2462, i.e., actions in which the government seeks “any civil fine, penalty, or forfeiture, pecuniary or otherwise.”[1]

In so holding, the Supreme Court refused the government’s invitation to hold that in a fraud case, the five-year clock of § 2462 does not begin to tick until the government discovers or reasonably could have discovered the fraud. Instead, the court held that...
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