SEC: Time Out?

US Courts expand the number of SEC sanctions which are subject to statutory time limits

2017 has seen a growing trend of Securities and Exchange Commission (SEC) cases being thrown out by US courts on the basis that they are time barred. Three cases in 2017 have found that actions brought by the SEC which are punitive in nature, regardless of any monetary sanction, are subject to statutory time limits.

Under 28 US Code section 2462 of, a five-year limitation applies to any "action, suit or proceeding for the enforcement of any civil fine, penalty, or forfeiture, pecuniary or otherwise." Since the Supreme Court case of Gabelli v SEC in 2013, the SEC has reasoned that...