980 F. Supp. 2d 487
S.D.N.Y.2013Background
- Plaintiffs filed a putative class action alleging Securities Act violations on Feb 5, 2013; Lead Plaintiff was appointed and lead counsel approved on May 14, 2013.
- Consolidated Amended Complaint filed June 6, 2013 asserted Exchange Act claims and omitted Securities Act claims.
- Plaintiffs sought to reassert Securities Act claims via a Second Amended Complaint with new class representatives; defendants opposed.
- Court acknowledged split authority on American Pipe tolling when initial plaintiff lacked standing or when claims were voluntarily dismissed.
- Court held American Pipe tolling applies to putative class members in this case; later addressed tolling for voluntarily dismissed claims and granted leave to file a Second Amended Complaint.
- Order grants 21 days for Plaintiffs to file the Second Amended Complaint adding claims against YPF, Repsol, and Underwriter Defendants; tolling not applicable against Individual Defendants.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether American Pipe tolling applies when initial plaintiff lacked standing | Putative class members can toll the statute. | IndyMac suggests tolling does not apply when initial plaintiff lacks standing. | American Pipe tolling applies; allow tolling where initial plaintiff lacked standing. |
| Whether tolling applies to voluntarily dismissed class claims | Tolling should extend to allow intervention after voluntary dismissal/amendment. | Voluntary dismissal typically ends tolling; claims should be time-barred. | American Pipe tolling applies to voluntarily dismissed claims; tolling preserved for amendment scenario. |
Key Cases Cited
- American Pipe & Constr. Co. v. Utah, 414 U.S. 538 (U.S. 1974) (tolling doctrine for absent class members)
- In re Morgan Stanley Mortg. Pass-Through Certificates Litig., 810 F.Supp.2d 650 (S.D.N.Y. 2011) (diverse views on tolling post-Intervenor mechanics; foundational analysis for tolling)
- Police & Fire Ret. Sys. v. IndyMac MBS, Inc., 721 F.3d 95 (2d Cir. 2013) (post-IndyMac limitations on American Pipe tolling relevance)
- In re Lehman Bros. Sec. & Erisa Litig., 799 F.Supp.2d 258 (S.D.N.Y. 2011) (class action tolling and standing considerations)
- In re Wachovia Equity Sec. Litig., 753 F.Supp.2d 326 (S.D.N.Y. 2011) (tolling scope in class actions)
- Oneida Indian Nation of N.Y. State v. Oneida Cnty., 622 F.2d 624 (2d Cir. 1980) (voluntary dismissal and tolling principles)