Title

Darn Your SOX: Exploring Retroactive Application of Extended Statutes of Limitation and Repose in Securities Fraud Litigation

Abstract

Unintended and unanticipated consequences of the 2002 enactment of Sarbanes Oxley are only recently making themselves known. One of these consequences includes differing interpretations of the section of Act which extends the statute of limitations for Sec. 10(b) securities fraud actions. The remedial nature and plain language of the Act call for retroactive application of the extended limitations period to revive previously time barred claims. The SEC has argued vigorously for such an interpretation, but, unfortunately, the majority of circuit courts analyzing the matter oppose this interpretation.

In my piece, Darn Your SOX: Exploring Retroactive Application of Extended Statutes of Limitation and Repose in Securities Fraud Litigation, I explore the intricate history of retroactivity with respect to Section 10(b) claims and analyze the issue focusing on recent cases involving the Sarbanes Oxley statute of limitations. At this time, the Eleventh Circuit is poised to be the first circuit court to hold that the extended statute revives stale claims. This ruling contravenes the holdings of the Second and Eighth Circuits, and promises to create a controversial split. Not only is this piece extremely timely, but it is the only piece that addresses this issue and the dynamic cases arising from unintended consequences of Sarbanes Oxley in securities litigation. I hope you enjoy reading it and look forward to hearing from you soon.

Disciplines

Securities Law

Date of this Version

May 2006