Merck & Co., Inc. v. Reynolds

Milberg won a significant victory before the United States Supreme Court, which issued a decision addressing when the two-year statute of limitations for securities fraud claims under 28 U.S.C. § 1658(b) begins to run. The Court rejected the concept of “inquiry notice” and held that the plaintiff must be on actual or constructive notice of “the facts constituting the violation”, including facts concerning the defendants’ scienter, in order to trigger the statute of limitations. This important holding potentially enables plaintiffs to bring claims based on misstatements made beyond the two-year limitations period.