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Expert Analysis

Why The SEC's Position In Gabelli V. SEC Doesn't Hold Up

Law360, New York (December 4, 2012, 10:50 AM EST) -- The fifth anniversary of the financial crisis is approaching. Five years also is the limitations period for penalty actions by the U.S. Securities and Exchange Commission — at least according to the words of the limitations statute. But the SEC contends that the limitations clock does not begin to run until the commission actually "discovers" a violation. The SEC's argument recently won the approval of the Second Circuit in Securities and Exchange Commission v. Gabelli.[1] The United States Supreme Court has granted certiorari to consider the issue....

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