Judge Shira Scheindlin
Plaintiffs’ Feb. 5 class action complaint alleged breach of the Securities Act. Their June 6 consolidated amended complaint (CAC) asserted claims under the Securities and Exchange Act, but omitted the Securities Act claims. Defendants opposed a second amended complaint (SAC) reasserting Securities Act claims. Plaintiffs argued their initial complaint tolled the limitations statute as to putative class members, who may now intervene to reassert claims abandoned by the CAC. Second Circuit has not decided if tolling under American Pipe & Constr. v. Utah applies where the initial named plaintiff lacked standing, or where claims are dismissed voluntarily. Discussing Police & Fire Retirement System of Detroit v. IndyMac MBS and In re Puda Coal Secs. Litig., the court found American Pipe tolling available to the present action’s putative class members. Plaintiffs had until Aug. 15, 70 days from the date of the CAC, to intervene and reassert the dismissed claims. Plaintiffs notified YPF, Repsol and the Underwriter Defendants of their intent to seek leave to amend by Aug. 15, and were prepared to file but for court instructions. Thus they have until Oct. 29 to file their SAC adding claims against YPF, Repsol, and the Underwriter Defendants.
