Supreme Court Considers Tolling of Statute of Limitations in Section 16(b) Claims
On November 29, the United States Supreme Court heard oral argument in Credit Suisse v. Simmonds, No. 10-1261, a case concerning the statute of limitations for claims brought under Section 16(b) of the Securities and Exchange Act of 1934. Section 16(b) provides for the disgorgement of profits earned by insiders (and those who own more than ten percent of any class of any equity security registered pursuant to the 1934 Act) from short-swing transactions in publicly traded securities. The case asks the Court to decide whether and under what circumstances the two year statute of limitations period is subject to tolling.