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Public Employees Retirement System of Mississippi v. IndyMac MBS, Inc.

This case concerns whether the filing of a class action complaint tolls the running of the three-year “repose” period in 15 U.S.C. 77m for all members of the proposed class. The Supreme Court has held that the filing of a class-action complaint generally stops the running of the statute of limitations for all class members, even if the class is not ultimately certified or class members opt out. In this securities action, however, the defendants argued that this principle should not apply to the “repose” period established by limitations periods applicable to federal securities claims. The U.S. Court of Appeals for the Second Circuit agreed, and the Supreme Court granted the plaintiffs’ petition for certiorari. Public Citizen filed an amicus curiae brief supporting the plaintiffs. The Supreme Court later dismissed the writ without deciding the issue, when the Court learned that the parties had largely settled the case.