Statute of Limitations Bars Follow-On Cases
This was the third class action brought by shareholders against a holding company, alleging violations of the Securities Exchange Act (SEA). The SEA has a two-year statute of limitations from the date of the discovery of the violation. In affirming dismissal, the nation’s high court barred “stacked” or “follow-on” cases that are filed after the expiration of the statute of limitations. The Court held upon denial of class certification, a putative class member, in lieu of promptly joining an existing suit or promptly filing an individual action, may not commence a class action anew beyond the time allowed by the applicable statute of limitations. This ruling abrogated prior precedent and potentially quashes such successive class actions.