Blair A. Nicholas is a senior and managing partner of Bernstein Litowitz Berger & Grossmann LLP, and David Kaplan is a senior counsel at the firm. This post is based on a Bernstein Litowitz publication by Mr. Nicholas and Mr. Kaplan.
Stock fraud, accounting scandals, and predatory behavior by investment banks have long plagued our nation’s financial markets. Fortunately, for over forty years, investors’ individual claims for recovery of damages under the U.S. securities laws have been protected and preserved by the filing of a securities class action. In 2013, however, a split emerged among the federal circuits regarding the scope of this class action “tolling” rule. That split, which recently deepened, has created great uncertainty and imposed heavy burdens on the institutional investor community.
