U.S. Supreme Court: Equitable Tolling Does Not Allow Follow-On Class Claims Outside of the Limitations Period

In the latest of several recent high court decisions addressing the questions of statutes of limitations and related questions of tolling, on June 11, 2018, the U.S. Supreme Court unanimously held that equitable tolling principles do not apply to toll statutes of limitation to permit previously absent class members to bring a subsequent class action outside the applicable limitations period. This seemingly narrow ruling is consistent with the Court’s recent proclivity to provide sharper edges and cleaner lines to statutes of limitations issues and to reduce the likelihood that class securities claims may continue be filed after the end of the limitations period. The Supreme Court’s June 11, 2018 opinion in China Agritech, Inc. v. Resh can be found here.   Background In its 1974 decision in American Pipe & Construction Co. v. Utah, the U.S. Supreme Court held that the filing of a class action complaint tolls the running of the statute of…

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