This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
The dispute centers on whether the American Pipe equitable‑tolling rule applies to both time limits in Section 13 of the Securities Act and whether Section 13 is a statute of repose that is not subject to tolling.
Background and question before the Court
Justice Kennedy asked whether the American Pipe rule applies.
Justice Gorsuch asked where the ambiguity in the statute lies.
What each side argues
Petitioner (California Public Employees’ Retirement System)
According to Petitioner (California Public Employees’ Retirement System), according to Petitioner (California Public Employees’ Retirement System), according to Petitioner (California Public Employees’ Retirement System), according to Petitioner (California Public Employees’ Retirement System), the petitioners ask the Court to hold that the American Pipe equitable‑tolling rule applies to both time limits in Section 13.
The petitioners argue that Section 13 is a statute of repose that cannot be tolled.
What happened at oral argument
The petitioners argued that American Pipe tolling should apply to both Section 13 time limits and that Section 13 is a statute of repose.
What the Court decided
Why it matters
If the Court adopts the petitioners’ view, future securities class actions will be barred after the three‑year repose period, preventing large investors from filing delayed claims.
According to Thomas C. Goldstein, the decision will also influence how the Private Securities Litigation Reform Act is interpreted with respect to representative‑plaintiff selection and the timing of interventions.
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- cf113565639390e12654-r1-0491bd407aeba8c8.pdforal argument transcript
Guide generated September 25, 2026. Automated validation accepted this version.