New York Court of Appeals Holds Securities Fraud Claims Under the Martin Act Must Be Brought Within Three Years

On June 12, 2018, in People v. Credit Suisse Sec. (USA) LLC the New York Court of Appeals dismissed the Attorney General’s Martin Act claim against Credit Suisse Securities (USA) LLC and affiliated entities on the grounds that this claim was barred by a three year statute of limitations.

The Court of Appeals thus overruled various lower court decisions that had previously applied a six year statute of limitations to Martin Act claims, halving the time prosecutors have to commence actions under New York’s expansive blue sky statute.