In an opinion authored by Justice Ginsburg and joined by all of the Justices (though with only a concurrence from Justice Sotomayor), the Supreme Court today ruled that its 1974 ruling in American Pipe & Constr. Co. v. Utah does not toll the statute of limitations for successive class actions. Justice Ginsburg summarized the Court’s holding as follows:
American Pipe tolls the statute of limitations during the pendency of a putative class action, allowing unnamed class members to join the action individually or file individual claims if the class fails. But American Pipe does not permit the maintenance of a follow-on class action past expiration of the statute of limitations.
The case, China Agritech, Inc. v. Resh, was the third in a series of putative class actions brought to address alleged federal securities law violations. Each of the first two lawsuits was filed within the two-year statute of limitations