The Securities and Exchange Commission must move more
quickly in pressing some fraud lawsuits, the U.S. Supreme Court ruled in a
decision that may affect agencies across the government, folks at Bloomberg tell us.
The justices today unanimously ruled in favor of two Gabelli
Funds LLC officials seeking to block SEC claims that they improperly let a
client engage in market timing, a practice of making frequent, short-term
trades at the expense of other investors. They contend the SEC missed the five-year
deadline to file the lawsuit.
The case raised issues similar to those addressed by the
Supreme Court in 2010, when it ruled that the two-year period for shareholder
fraud suits doesn’t begin until investors have indications of intentional
company wrongdoing. The new case concerned SEC enforcement actions, rather than
private suits….
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