Affirming dismissal of some lingering Morgan Keegan bond fund actions, the Sixth Circuit joined the Second in holding that American Pipe class-action tolling does not affect the expiration of a statute of repose. The Court reasoned that, whether equitable or procedural, American Pipe cannot supersede the substantive extinction of a legal right by repose.
The Tenth Circuit has held that American Pipe tolls statutes of repose pending class certification. Joseph v. Wiles, 223 F. 3d 1155 (10th Cir. 2000).
The Second Circuit said not. Police & Fire Ret. Sys. Of City of Detroit v. IndyMac MBS, Inc., 721 F.3d 95 (2d Cir. 2013).
The decision in Stein v. Regions Morgan Keegan Select High Income Fund, Inc., Nos. 15-5903 / 5905 (6th Cir. May 19, 2016) is here.
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