Resh Exposes Defendants To Serial Class Cert. Relitigation

Law360, New York (June 19, 2017, 12:32 PM EDT) -- Overruling (or, at least, creatively recharacterizing) its own precedent, the Ninth Circuit held in Resh v. China Agritech Inc. (9th Cir. May 24, 2017) that the pendency of an earlier uncertified class action tolls the statute of limitations not only for later-filed individual claims, but for subsequent class actions as well. The Ninth Circuit's decision opens the door to the possibility of serial, successive attempts to certify a class in securities (and other) cases, potentially exposing defendants to an almost never-ending series of class actions.

Under American Pipe & Construction Co. v. Utah, 414 U.S. 538 (1974), and Crown Cork &...

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