For Whom The Statute Stops Tolling

Law360, New York (April 3, 2012, 6:55 PM EDT) -- On March 26, 2012, the United States Supreme Court held, in Credit Suisse Securities (USA) LLC v. Simmonds, that an insider’s failure to file a disclosure statement under §16(a) of the Securities and Exchange Act of 1934 does not indefinitely toll the two-year statute of limitations for claims seeking recovery of “short-swing” profits under §16(b).

Laws Implicated

Under §16(b) of the Securities and Exchange Act of 1934, a corporation or a security holder of a corporation may sue directors, officers, or 10 percent shareholders of publicly...
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