Supreme Court Receives Petitioner’s Brief and Eight Supporting Briefs In Significant Class Action Involving “Unsettled Question” of Whether Tolling Applies to a Statute of Repose.

In March, the Supreme Court granted certiorari to determine whether the filing of a putative class action serves, under the American Pipe rule, to satisfy the three-year time limitation in § 13 of the Securities Act with respect to the claims of putative class members.  Now, the Court is beginning to consider the merits.  The Court’s ruling may have implications for any class action claim subject to a statute of repose.

This case involved a class action led by the State Treasurer of Wyoming and that state’s public retirement fund (collectively “Wyoming”), alleging that defendant banks violated the Securities Act when issuing mortgage-backed securities.  The district court dismissed many of the claims due to Wyoming’s lack of standing.  Thereafter, other retirement systems (“proposed intervenors”) moved to intervene.

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