Supreme Court rules against SEC on discovery
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) -- In a unanimous ruling, the Supreme Court on Wednesday said the Securities and Exchange Commission brought a case against an investment adviser too late. The SEC has to file suit within five years from the date when the alleged fraud first occurred, the Court held. The court reversed a Second Circuit ruling that the five-year statute of limitations didn't start until the SEC discovered or reasonably could have discovered the fraud. The case was "Gabelli et al v. Securities and Exchange Commission," in which the SEC alleged the Gabelli Global Growth Fund allowed market timing by one of its investors, Headstart Advisers, without disclosing it to others. (Updates to include details of the SEC complaint.)