Public Employees’ Retirement System of Mississippi v. IndyMac MBS, Inc., et al.
Issues
Does the filing of a putative class action serve, under the American Pipe rule, to suspend the three-year time limitation in § 13 of the Securities Act with respect to the claims of putative class members?
The Securities Act of 1933 (“Securities Act”) requires companies issuing a security to create offering documents that adequately outline the security’s risks to potential investors. Section 13 of the Securities Act requires a plaintiff to file a Securities Act claim within three years to allege the existence of material misstatements or omissions in these offering documents. In American Pipe & Construction Co. v. Utah, however, the Supreme Court held that many statutory time limits could be “tolled” or stopped when plaintiffs are potential members of an existing class action dealing with the same legal claim. This case should decide whether or not the time limitation in § 13 is the sort of limit subject to this “American Pipe rule.” The decision has implications for the efficiency of courts and stock issuers alike.
Questions as Framed for the Court by the Parties
Does the filing of a putative class action serve, under the American Pipe rule, to suspend the three-year time limitation in § 13 of the Securities Act with respect to the claims of putative class members?
Respondent IndyMac MBS, Inc. (“IndyMac”) is an issuer of a type of security known as mortgage pass-through certificates. See In re IndyMac Mortgage-Backed Securities Litigation, 718 F. Supp. 2d 495, 498–99 (S.D.N.Y. 2010).
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Additional Resources
- Lyle Denniston: Another Look at Class-Action Cases, SCOUSblog (Mar. 10, 2014).
- Lawrence Hurley: U.S. Supreme Court to Decide if IndyMac MBS Plaintiff Filed Too Late, Reuters (Mar. 10, 2014).
- Kevin LaCroix: Supreme Court to Decide Securities Act Statute of Repose Issue in IndyMac MBS Case, The D & O Diary (Mar. 11, 2014).
- Stephanie Russell-Kraft: IndyMac Case Could Reset Securities Class Action Timetable, Law360 (Mar. 10, 2014).