Time Limits for Making Claims

Because the facts in a typical broker case may give rise to several claims, the analysis of time limits to bring a claim can be complex. Claims for securities fraud under Rule 10b-5 of the Securities Act of 1933 must be brought within one year of the time that the fraud should have been discovered, or within three years of the occurrence, whichever is shorter. Claims for common law fraud must be brought within three years of discovery. Claims for breach of fiduciary duty must be brought within four years of discovery, and so on.

Moreover, statutes of limitations for state securities fraud, common law fraud, breach of contract, and negligence may also be subject to discovery, delayed accrual, or tolling rules that can substantially extend an investor's time to bring a claim. Under such rules, claims can sometimes be successfully brought a decade or more after the first wrongful act occurred.

In addition to the time limits imposed under each claim, the Code of Arbitration Procedures of the NASD provide that claims submitted more than six years after their occurrence are not eligible for arbitration.

The thing for an investor to remember about delay is that, while no amount of delay is safe, he should never conclude that his claims have become time-barred without first getting the advice of a qualified lawyer.

For more information or a free consultation, call us toll free nationwide at 800-699-2728 or e-mail me at vdicarlo@dicarlolaw.com

DISCLAIMER: The information at this site is provided as a public service. It is not intended as legal advice and should not be relied upon. You are advised to consult legal counsel before adopting any of the ideas or suggestions in this material, which may or may not be applicable in your jurisdiction or to your specific situation.