Gabelli v. SEC: the Supreme Court’s Statute of Limitations Ruling Puts Pressure on Federal Agencies to Investigate More Aggressively and Sue More Quickly
March 4, 2013 Leave a comment
Schnader Alert by Stephen A. Fogdall:
The U.S. Supreme Court’s recent decision in Gabelli v. Securities and Exchange Commission holds that the SEC and other federal agencies are not entitled to the discovery rule to extend the accrual date of their enforcement claims, unless a specific federal statute provides otherwise. The decision will put pressure on agencies to use their investigative tools more aggressively, and to move from an investigative mode to a litigation posture more promptly. Thus, the practical effect of the decision may be to promote more rapid and less discriminating investigation and enforcement activity by some agencies to minimize the risk of a limitations bar.
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