15 U.S.C. § 77m — Limitation of actions

submitted 93 years ago by ch. 38 to r/title-15-COMMERCE-AND-TRADE · 134 words · no verdicts yet

in plain englishAI-generated · not legal advice

Lawsuits over a false registration statement must start within one year of discovering the problem. Lawsuits over a bad prospectus sale also have a one-year deadline from the violation. No lawsuit can happen more than three years after the security was sold or offered.

No lawsuit to enforce liability under section 77k (false registration statements) or section 77l(a)(2) (false prospectuses or communications) may be brought unless it starts within one year after the untrue statement or omission was discovered, or within one year after it should have been discovered through reasonable diligence. A lawsuit to enforce liability under section 77l(a)(1) (illegal sales) must instead be brought within one year after the violation it is based on. On top of that one-year deadline, there is an outer limit: no lawsuit to enforce liability under section 77k or section 77l(a)(1) may be brought more than three years after the security was bona fide offered to the public. No lawsuit under section 77l(a)(2) may be brought more than three years after the sale.

the actual law source: uscode.house.gov ↗public domain

No action shall be maintained to enforce any liability created under section 77k or 77l(a)(2) of this title unless brought within one year after the discovery of the untrue statement or the omission, or after such discovery should have been made by the exercise of reasonable diligence, or, if the action is to enforce a liability created under section 77l(a)(1) of this title, unless brought within one year after the violation upon which it is based. In no event shall any such action be brought to enforce a liability created under section 77k or 77l(a)(1) of this title more than three years after the security was bona fide offered to the public, or under section 77l(a)(2) of this title more than three years after the sale.

Source credit: (May 27, 1933, ch. 38, title I, § 13, 48 Stat. 84; June 6, 1934, ch. 404, title II, § 207, 48 Stat. 908; Pub. L. 105–353, title III, § 301(a)(3), Nov. 3, 1998, 112 Stat. 3235.)

history & why it existsrecord from the source credit

1933Enacted · Act of May 27, 1933, ch. 38 · 48 Stat. 84
1934Amended · Act of June 6, 1934, ch. 404 · 48 Stat. 908
1998Amended · Pub. L. 105-353 · 112 Stat. 3235

A history note hasn’t been published yet. The record shows enactment by ch. 38 on 1933-05-27.

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