United States Ninth Circuit

Once there exists sufficient indicia of fraud to cause a reasonable investor to inquire into whether he or she has been defrauded, the statute of limitations on a claim under section 10(b) of the Securities Exchange Act begins running when the investor, in the exercise of reasonable diligence, should have discovered the facts giving rise to his or her claim. In a securities fraud action brought by plaintiff arising from defendants' management of investments for plaintiff with the proceeds of the sale of her house, summary judgment for defendants is reversed where plaintiff's federal securities fraud claim is not barred by the statute of limitations.

Appellate Information

• Argued 02/12/2007
• Decided 05/11/2007
• Published 05/11/2007

Judges

• Before:  JOHN T. NOONAN, JR., RONALD M. GOULD, and JOHNNIE B. RAWLINSON, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• Joseph M. Alioto, San Francisco, CA, Theodore F. Schwartz, St. Louis, MO, and Myron Moskovitz, Berkeley, CA, for the plaintiff-appellant.


• For Appellees:
  
• Sara B. Brody and Alexander M.R. Lyon, Heller Ehrman, LLP, San Francisco, CA, for the defendants-appellees.