On March 26, the Supreme Court will hear arguments in China Agritech, Inc. v. Resh, a case which will further clarify statutes of limitation in class actions.
In 2011, company shareholders alleged fraudulent business practices and sued China Agritech in two successive putative class actions in 2011 and 2012. The plaintiffs alleged various securities law violations against the company and several individual defendants. Class certification was denied in both cases.
A third putative class action suit was brought by shareholder Michael Resh in 2014, alleging securities law violations arising from the same facts and circumstances as the first two cases. China Agritech moved to dismiss the complaint on the basis that it had been filed after the two year limitations period. Resh and the additional plaintiffs argue that under the precedent set in American Pipe & Construction v. Utah, the limitations period had been tolled on their claims during the pendency of the two prior class actions. The District Court rejected this contention, and the Ninth Circuit reversed. The Supreme Court will now hear arguments on whether the American Pipe tolling rule allows a previously unnamed plaintiff to bring a subsequent class action after the applicable limitations period has passed.
Christopher C. Murray of Ogletree Deakins will join us to give his impressions of the oral argument.
Featuring:
Christopher C. Murray, Shareholder, Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

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