Securities Law | Expert Legal Commentary
June 30, 2010
Merck & Co. v. Reynolds: Statute of Limitations for Securities Fraud Begins to Run When Plaintiff Receives Evidence of Scienter
Merck & Co. v. Reynolds
By
Yuri Mikulka and Joel B. Ginsberg of Zuber & Taillieu LLP
The U.S. Supreme Court has held that the statute of limitations set forth in 28 U.S.C. section 1658(b)(1) begins to run once the reasonable investor/plaintiff discovers the facts constituting the elements of the violation, including scienter. In Merck & Co. v. Reynolds, ___ U.S. ____, 130 S.Ct. 1784 (2010), the U.S. Supreme Court affirmed the Third Circuit Court of Appeals’ finding that the investor class timely filed its action. The case has potentially far-reaching effects, in that it may enable plaintiffs to delay the filing of litigation in order to increase settlement value. Similarly, it introduces a level of uncertainty for potential defendants, who can no longer rely on a strict two-year limitations period.
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About the Authors
Yuri Mikulka is a Partner of Zuber & Taillieu LLP, and chairs its litigation department.
Joel B. Ginsberg is an Associate of Zuber & Taillieu LLP, focusing on corporate law, and securities and finance law.
Image Credit: ©iStockphoto.com/FotografiaBasica
View a PDF of the judicial opinion