Opinion ID: 2718900
Heading Depth: 4
Heading Rank: 1

Heading: Federal securities laws

Text: Sections 11 and 12(a)(2) of the Securities Act of 1933 impose liability on certain participants in a registered securities offering that involves material misstatements or -5- omissions. Section 11 applies to registration statements, and Section 12(a)(2) applies to prospectus materials and oral communications.3 For private litigants bringing a claim under Sections 11 or 12(a)(2), two deadlines must be satisfied. Both appear in Section 13 of the Securities Act (codified as 15 U.S.C. § 77m),4 under the heading “Limitation of actions.” First, a claim must be brought within one year from the date the violation is discovered or should have been discovered through the exercise of reasonable diligence. Second, a claim is subject to a three-year limit, which provides that “[i]n no event” shall a claim under Section 11 be filed “more than three years after the security was bona fide offered to the public,” and no “more than three years after the sale” in the case of a Section 12(a)(2) claim. Id. at § 77m.