Supreme Court Upholds Time Limit for Securities Class Actions

Yesterday, in California Employees’ Retirement System v. ANZ Securities the U.S. Supreme Court ruled 5-4 that the filing of a class action does not stop the clock on the three-year statute of repose for claims under the Securities Act.

“Plain and simple, the decision means investors can’t wait more than three years to decide whether to stay in securities class actions,” writes Reuters.

Investors argued that such a requirement would be a waste of time and money, but in the court’s opinion, written by Justice Anthony Kennedy, the majority called investors’ concerns “overstated.”