| WASHINGTON, March 10
WASHINGTON, March 10 The U.S. Supreme Court on
Monday agreed to consider whether class action claims against
underwriters of securities issued by a unit of the now-defunct
IndyMac Bancorp Inc should be able to proceed.
The court will rule on whether the three-year window for
filing certain securities claims is suspended if investors can
show they would have been parties in a previously filed class
action lawsuit had it not been dismissed. Lower courts are split
on the question.
Various institutional investors, including the Wyoming state
retirement fund, sued over what they said were untrue statements
and omissions concerning mortgage-backed securities issued by
IndyMac subsidiary IndyMac MBS Inc. The bank failed in July
The defendants in the case are banks that were underwriters
for the offerings. They are units of Credit Suisse Group AG
, Deutsche Bank AG, Goldman Sachs Group Inc
and Morgan Stanley.
A federal district judge in New York and the 2nd U.S.
Circuit Court of Appeals, in a June 2013 ruling, both ruled for
The public employee retirement system of Mississippi, the
plaintiff seeking high court review, was not part of the lawsuit
at the time it was dismissed, but said it could revive the case
because it would have been a member of the class if the
litigation had been allowed to continue.
The fund cites a 1974 Supreme Court case, American Pipe &
Construction Co v. Utah, which said that the filing of a class
action lawsuit before the deadline keeps the claims of all
potential class members alive.
The banks counter that the 1933 Securities Act states that
the specific claims at issue in the case cannot be brought more
than three years after the securities were offered to the
The court will hear oral arguments and issue a decision in
its next term, which starts in October and ends in June 2015.
The case is Public Employees' Retirement System of
Mississippi, v. IndyMac, U.S. Supreme Court, 13-640.