The U.S. Supreme Court Rejects a Broad Tolling Approach To the Statute of Limitations for Section 16(b) Claims
By WILLIAM F. SULLIVAN, HOWARD M. PRIVETTE, D. SCOTT CARLTON, & MICHELLE R. HULL
In Credit Suisse Sec. (USA) LLC v. Simmonds, the United States Supreme Court addressed the statute of limitations applicable to claims under Section 16(b) of the Securities Exchange Act of 1934 (the ‘‘Exchange Act’’). Section 16(b) allows claims to be made on behalf of an issuer of securities to recover ‘‘shortswing’’ trading profits from certain enumerated "insiders."
Reproduced with permission from Securities Regulation & Law Report, 44 SRLR 981, 05/14/2012. Copyright 2012 by The Bureau of National Affairs, Inc. (800-372-1033)