As we reported last year, the Second U.S. Circuit Court of Appeals in New York recently ruled against the retroactive application of Sarbanes-Oxley Section 804, which is the provision extending the statute of limitations on securities fraud cases.
Before Sarbanes-Oxley, shareholders needed to file securities fraud claims within one year of discovering the fraud, and within three years of the fraudulent incident. SOX 804 lengthened those limitations to two years and five years, respectively.
