October Term 2012 · Docket 11-1274
When does the five-year clock start for SEC fraud penalties?
The SEC seeks to sue for fraud years after the act. the sides that brought the case argue the clock starts at the act.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Liman argued the statute sets a five-year limit.
He stated Congress provided a clear time limitation.
Mr. Wall focused on the term accrual in the statute.
He argued the statute uses specific legal language.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 17-25 — Transcript, file page 10, lines 17-25
- Official Supreme Court Transcript — file page 10, lines 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 11, lines 23-29 — Transcript, file page 11, lines 23-29
- Official Supreme Court Transcript — file page 11, lines 33-45 — Transcript, file page 11, lines 33-45
- Official Supreme Court Transcript — file page 12, lines 13-17 — Transcript, file page 12, lines 13-17
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 11-25 — Transcript, file page 4, lines 11-25
- Official Supreme Court Transcript — file page 5, lines 19-25 — Transcript, file page 5, lines 19-25
- Official Supreme Court Transcript — file page 5, lines 3-13 — Transcript, file page 5, lines 3-13
- Official Supreme Court Transcript — file page 6, lines 9-39 — Transcript, file page 6, lines 9-39
- Official Supreme Court Transcript — file page 7, lines 3-9 — Transcript, file page 7, lines 3-9
- Official Supreme Court Transcript — file page 8, lines 11-33 — Transcript, file page 8, lines 11-33
- Official Supreme Court Transcript — file page 9, lines 31-37 — Transcript, file page 9, lines 31-37
A citizen's guide to the whole case
What this case is about
The dispute centers on the Securities Exchange Act. The SEC wants to sue for fraud penalties. the sides that brought the case argue the five-year limit applies. The core issue is when the clock starts.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
How the case got here
The Supreme Court heard oral argument in this case on January 8, 2013.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
What each side wants
The SEC wants to sue for fraud penalties after five years.
the sides that brought the case want the five-year limit to bar the SEC's claims.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
What each side says
The SEC argues the clock starts when the fraud is discovered.
the sides that brought the case argue the clock starts when the fraud occurs.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
What the justices asked
Justice Scalia asked if the clock starts when the plaintiff discovers the fraud.
Justice Sotomayor asked how the theory handles fraudulent concealment tolling.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 17-25 — Transcript, file page 10, lines 17-25
- Official Supreme Court Transcript — file page 10, lines 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 11, lines 23-29 — Transcript, file page 11, lines 23-29
- Official Supreme Court Transcript — file page 11, lines 33-45 — Transcript, file page 11, lines 33-45
- Official Supreme Court Transcript — file page 12, lines 13-17 — Transcript, file page 12, lines 13-17
- Official Supreme Court Transcript — file page 4, lines 11-25 — Transcript, file page 4, lines 11-25
- Official Supreme Court Transcript — file page 5, lines 19-25 — Transcript, file page 5, lines 19-25
- Official Supreme Court Transcript — file page 5, lines 3-13 — Transcript, file page 5, lines 3-13
- Official Supreme Court Transcript — file page 6, lines 9-39 — Transcript, file page 6, lines 9-39
- Official Supreme Court Transcript — file page 7, lines 3-9 — Transcript, file page 7, lines 3-9
- Official Supreme Court Transcript — file page 8, lines 11-33 — Transcript, file page 8, lines 11-33
- Official Supreme Court Transcript — file page 9, lines 31-37 — Transcript, file page 9, lines 31-37
Why it matters
This case defines the SEC's power to punish fraud. It sets the deadline for government penalty claims. It affects how long the government can act.
Official sources for this section
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 17-25 — Transcript, file page 10, lines 17-25
- Official Supreme Court Transcript — file page 10, lines 39-47 — Transcript, file page 10, lines 39-47
- Official Supreme Court Transcript — file page 11, lines 23-29 — Transcript, file page 11, lines 23-29
- Official Supreme Court Transcript — file page 11, lines 33-45 — Transcript, file page 11, lines 33-45
- Official Supreme Court Transcript — file page 12, lines 13-17 — Transcript, file page 12, lines 13-17
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 11-25 — Transcript, file page 4, lines 11-25
- Official Supreme Court Transcript — file page 5, lines 19-25 — Transcript, file page 5, lines 19-25
- Official Supreme Court Transcript — file page 5, lines 3-13 — Transcript, file page 5, lines 3-13
- Official Supreme Court Transcript — file page 6, lines 9-39 — Transcript, file page 6, lines 9-39
- Official Supreme Court Transcript — file page 7, lines 3-9 — Transcript, file page 7, lines 3-9
- Official Supreme Court Transcript — file page 8, lines 11-33 — Transcript, file page 8, lines 11-33
- Official Supreme Court Transcript — file page 9, lines 31-37 — Transcript, file page 9, lines 31-37
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
- Official Supreme Court Transcript — file page 21, lines 19-33 — Transcript, file page 21, lines 19-33
- Official Supreme Court Transcript — file page 21, lines 35-47 — Transcript, file page 21, lines 35-47
- Official Supreme Court Transcript — file page 3, lines 19-9 — Transcript, file page 3, lines 19-9
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.