When Are Securities Act Claims Untimely? The Court of Appeals for the Third Circuit Places a Heavier Burden on Defendants

September 23, 2013

The Securities Act of 1933, 15 U.S.C. § 77a et seq., provides for civil liability when a registration statement or prospectus contains material misrepresentations or omissions. Section 13 of the Securities Act, 15 U.S.C. § 77m, requires Securities Act claims to be brought “within one year after the discovery of the untrue statement or the omission, or after such discovery should have been made by the exercise of reasonable diligence.” In a recent decision, Pension Trust Fund for Operating Engineers v. Mortgage Asset Securitization Transactions, Inc. et al., No. 12-3454 (Sept. 17, 2013), the United States Court of Appeals for the Third Circuit reached two issues of first impression within the Third Circuit. The Court’s resolution of those two issues likely will make it more difficult for a defendant successfully to move to dismiss Securities Act claims based upon the running of the statute of limitations or to establish a statute of limitations defense.

Read "When Are Securities Act Claims Untimely? The Court of Appeals for the Third Circuit Places a Heavier Burden on Defendants"