US Corporate Law News: a shorter statue of limitations for claims under the Martin Act

24 June 2018 | Applicable law: US

In a 4-to-1 decision in the Credit Suisse case, the New York Court of Appeals held that the statute of limitations to bring a claim under the Martin Act is three and not six years.

The decision relieves Credit Suisse from an action commenced in 2012, seeking $11 billion in damages from the financial firm's 2006 and 2007 marketing and sale of mortgage bonds. Enacted in 1921, the Martin Act permits the New York State Attorney General to investigate and prosecute fraudulent securities sales practices. The court's majority opinion proposed that, while the claims against Credit Suisse are time barred under the Martin Act, they may be viable under New York's Executive Law. Arguing that the legislature intended the statute of limitations to be six years, the dissent alerted the legislature to correct any ambiguity in the statute's drafting.

For more information see here.

This article was written with contributions from Nabeela Latif.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.


Related experience

As a full-service law firm, we are able to provide advice and information about a wide range of other issues. Here are some related areas.

Join the club

We have lots more news and information that you'll find informative and useful. Let us know what you're interested in and we'll keep you up to date on the issues that matter to you.