Supreme Court to Consider American Pipe Tolling in Securities Act Cases

On March 10, the U.S. Supreme Court granted a petition for a writ of certiorari to consider whether the American Pipe tolling doctrine applies to the statute of repose provided for in the Securities Act of 1933.  A putative intervenor in an RMBS class action against several RMBS underwriters, the Public Employees’ Retirement System of Mississippi (MPERS), petitioned the Court to consider the case after the Second Circuit held that the American Pipe doctrine – which tolls the statute of limitations for all members of a proposed class when a putative class action complaint is filed – does not toll the Securities Act’s statute of repose applicable in 1933 Act cases.  MPERS sought leave to intervene in the action after the lower courts held that the class plaintiffs lacked standing to represent purchasers of certain RMBS certificates.  The case is scheduled for argument in October of this year. Order.