China Agritech, Inc. v. Resh—U.S. Supreme Court Holds That a Pending Class Action Does Not Toll the Statute of Limitations for Future Class Action Claims: Decision Reinforces the Effect of the Court’s Recent Decision in CalPERS v. ANZ Securities, Inc.Sullivan & Cromwell LLP - June 12, 2018
On June 11, 2018, the U.S. Supreme Court issued its opinion in China Agritech, Inc. v. Resh, holding that a pending putative class action does not toll the statute of limitations for future claims brought on behalf of a class. In reversing a decision from the Ninth Circuit, the Supreme Court sided with the majority of federal appeals courts that have held that, although a putative class action tolls the statute of limitations for future individual claims, it does not toll it for successive class actions under Federal Rule of Civil Procedure 23. Together with the Court’s decision last Term in CalPERS v. ANZ Securities, Inc., which held that a putative class action does not toll a statute of repose, the Court has now cabined the period in which a defendant faces class action exposure based on a certain set of allegations, thus allowing companies to better assess the risks they face from putative class action suits.