U.S. Supreme Court: Discovery Rule Doesn't Apply To SEC

WASHINGTON, D.C. - The U.S. Supreme Court on Feb. 27 reversed a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek securities fraud penalties for conduct that had ceased more than five years before the SEC brought the lawsuit, saying that applying the discovery rule to government penalty actions "is far more challenging than applying the rule to suits by defrauded victims, and the Court declines to do so" (Marc J. Gabelli, et al. v. Securities...(read more)