Archive for November 30th, 2009

The Supreme Court heard argument today in the securities class action case, Merck & Co., Inc. v. Reynolds, No. 08-905 (U.S.).  The case involves allegations that the defendant defrauded investors by making false  statements about the health risks associated with the drug Vioxx.  The issue in the case, courtesy of SCOTUS Wiki, is

Whether under the “inquiry notice” standard applicable to federal securities fraud claims, the statute of limitations does not begin to run until an investor receives evidence of scienter.

Tony Mauro of the National Law Journal quotes remarks from Justices Ginsberg, Scalia, and Kennedy in concluding that the Court appeared skeptical of the defendant’s arguments that information available in the public domain in 2001 should have given investors sufficient knowledge to start the statute of limitations running.  Mauro’s article is available at Law.com.

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