Case Law Alerts
Statute of limitations in securities cases.
The 11th Circuit Court of Appeals found that an IRS notice advising an investor in a tax shelter that the investment lacked economic substance puts the investor on sufficient notice of fraud so that, if the investor does not exercise reasonable diligence to discover his causes of action, he cannot thereafter toll the limitations period with respect to his action arising therefrom.
A limitations period is only tolled if the plaintiff cannot discover the fraud through reasonable diligence or if the defendants engage in actual fraud that deters or debars him from bringing suit.
Case Law Alerts, 1st Quarter, January 2016
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