Merck v. Reynolds: The Supreme Court Clarifies the Standard for Determining When a Plaintiff “Discovers” Fraud for Limitations Purposes in Section 10(b) Actions

The Supreme Court decision in Merck & Co. v. Reynolds¹ will make it easier for plaintiffs to avoid dismissal of complaints on grounds that they are time-barred. In that opinion, the Court construed the statute of limitations applicable to private actions brought under Section 10(b) of the Securities Exchange Act of 1934.  The relevant provision, 28 U.S.C. §1658(b), provides that a complaint is timely if filed by the earlier of “2 years after the discovery of the facts constituting the violation” or “5 years after such violation.”

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