In re IndyMac Mortgage-Backed Sec. Litig.
Intervenors appealed the district court's denial of their motion to intervene in a suit where the lead plaintiff and other putative class members alleged that defendants had made fraudulent misrepresentations and omissions in the offering and sale of certain financial instruments which they purchased. The court held that: (1) American Pipe & Construction Co. v. Utah's tolling rule did not apply to the three-year statute of repose in Section 13 of the Securities Act of 1933, 15 U.S.C. 77m; and (2) absent circumstances that would render the newly asserted claims independently timely, neither Federal Rule of Civil Procedure 24 nor the Rule 15(c) "relation back" doctrine permitted members of a putative class, who were not named parties, to intervene in the class action as named parties in order to revive claims that were dismissed from the class complaint for want of jurisdiction. The proposed intervenors could not circumvent Section 13's statute of repose by invoking American Pipe or Rule 15(c). Accordingly, the court affirmed the judgment insofar as the district court partially denied the motions to intervene. View "In re IndyMac Mortgage-Backed Sec. Litig." on Justia Law