Time Limitations for Bringing State and Federal Securities Claims
The statute of limitations is the rule of law governing the period of time during which an
investor must file a claim for a violation of the state and federal securities laws. These time limits
vary from state to state. In most states, the statute of limitations does not necessarily begin to run
at the time that the investor purchased the security, but, instead, begins to run when he or she
discovers or reasonably should have discovered the act or conduct giving rise to his or her
securities claim.1 This principle is known as the “discovery rule”.
The federal securities laws and some state securities laws contain an additional limitation
known as the statute of repose, which imposes a stricter deadline than the statute of limitations.
The statute of repose begins to run from either the date of purchase or the date of the act or
transaction constituting the violation. The statute of repose sets forth the outermost time in which
an individual may bring a claim. If the individual fails to bring the claim within that time period,
the claim is forever barred. The statute of repose is not concerned with if or when the investor
discovers that he or she has a claim for securities fraud. It acts as a bar to all claims under the
securities laws and begins to run from the date the investor purchased the security or from the
date of the act or transaction constituting the violation.
For example, the federal securities act contains both a two (2) year statute of limitations
and a five (5) year statute of repose. The federal securities act provides the following:
“A private right of action that involves a claim of fraud, deceit, manipulation, or
contrivance in contravention of a regulatory requirement concerning the
securities laws...may be brought not later than the earlier of-
(1) 2 years after the discovery of the facts constituting the violation; or
(2) 5 years after such violation.”
The following chart lists citations to all of the applicable provisions of the state and
federal securities laws and their corresponding statutes of limitations. The chart also indicates
whether each individual jurisdiction applies a statute of repose in addition to the statute of
limitations, and whether the “discovery rule” applies with respect to the statute of limitations.
Please note that the applicable laws and regulations set forth below are complex, and the
legislation is subject to change. For complete information, please refer to the official text of each
statute. This information is not intended as legal advice. For such advice, please consult with an
attorney.
1 With respect to the triggering of the limitations period, Courts consistently have held that the
receipt of confirmation slips or monthly account statements sent to investors are sufficient to place an
investor on notice and to trigger the limitations period. Koke v. Stifel, Nicolaus & Co., Inc., 620 F.2d
1340, 1343-1344 (8th Cir. 1980)(holding that a securities claim [was] time barred where confirmation
slips and account statements were sent to plaintiff and plaintiff failed to take any timely action); Clark v.
Robert W. Baird & Co. Inc. 152 F.Supp.2d 1040, (N.D.Ill. 2001) (finding that investor’s claims against
broker-dealer and registered representative were time barred where investor received a monthly account
statement itemizing a single unauthorized transaction); Caraluzzi v. Prudential Securities, Inc., 824
F.Supp. 1206, 1214 (N.D.Ill. 1993)(claim was time barred where plaintiffs received monthly statements
prior to the expiration of the statute of limitations, but failed to initiate claim prior the expiration of the
statute of limitations).
urisdiction Securities Law Statute of Limitations
Discovery
Rule Statute of Repose
Federal
15 U.S.Code §77(e), (j); 17 Code of
Fed. Regulation §240.10b-5 2 years; 28 U.S.C. § 1658(b)(1) yes 5 years; 28 U.S.C. § 1658(b)(2)
Alabama AL Code 1975 § 8-6-17 2 years; AL Code § 8-6-19(f) yes N/A
Alaska AK Statutes § 45.55.010 2 years; A.S. § 45.55.930(f) yes 3 years; A.S. § 45.55.930 (f)
Arizona AZ Statutes Annotated § 44-1991 2 years; A.R.S. § 44-2004(B) yes 5 years; A.R.S. § 44-2004(C)
Arkansas AR Code Annotated § 23-42-507 5 years; A.C.A. § 23-42-105(a)(1) yes N/A
California CA Corp. Code § 25400 2 years; CA CORP § 25506(b) yes 5 years; CA CORP § 25506(b)
Colorado CO Revised Statutes § 11-51-501 3 years; C.R.S.A. § 11-51-604(8) yes 5 years; C.R.S.A. § 11-51-604(8)
Connecticut CT Statutes Annotated § 36b-4 2 years; C.G.S.A. § 36b-29(f) yes 5 years; C.G.S.A. § 36b-29(f)
Delaware 6 DE Code Annotated § 7303 3 years; 6 DE Code § 7323(e) no N/A
District of
Columbia DC Official Code § 31-5605.02 1 year; DC Stat. § 31-5606.05(f) yes 3 years; DC Stat. § 31-5606.05(f)
Florida FL Statutes Annotated § 517.301. 2 years; F.S.A. § 95.11(4)(e) yes 5 years; F.S.A. § 95.11(4)(e)
Georgia Code of GA Annotated § 10-5-12 2 years; GA Stat. § 10-5-14(d) yes N/A
Hawaii HI Rev. Statutes Ann. § 485A-501 2 years; H.R.S. § 485A-509(j) yes 5 years; H.R.S. § 485A-509(j)
Idaho ID Code Annotated § 30-14-501 2 years; I.C. § 30-14-509(j) yes 5 years; I.C. § 30-14-509(j)
Illinois 815 IL Compiled Stat. Ann. § 5/12 3 years; 815 ILCS § 5/13(D) yes 5 years; 815 ILCS § 5/13(D)
Indiana Annotated IN Code § 23-19-5-1 3 years; I.C. § 23-19-5-9(g) yes
N/A
Iowa IA Code Annotated § 502.501A 2 years; I.C.A. § 502.509(10) yes 5 years; I.C.A. § 502.509(10)
Kansas KS Statutes Ann. § 17-12a501 2 years; K.S.A. 17-12a509(j)(2) yes 5 years; K.S.A. § 17-12a509(j)(2)
Kentucky KY Rev. Statutes Ann. § 292.320 3 years; K.R.S. § 292.480(5) yes N/A
Louisiana LA Statutes Annotated § 712 2 years; L.S.A.-RS § 51:714(C)(1) yes N/A
Maine 32 ME Rev. Statutes Ann. § 16501 2 years; 32 M.R.S.A. §
16509(10)(B) yes 5 years; 32 M.R.S.A. § 16509(10)(B)
Maryland
MD Code, Corporations and
Associations § 11-301
1 year; MD CORP & ASSNS § 11-
703(f) yes
3 years; MD CORP & ASSNS § 11-
703(f)
Massachusetts MA Gen. Laws Ann. 110A § 101 4 years; M.G.L.A. 110A § 410(e) yes N/A
Michigan MI Compiled Laws Ann. § 451.501 2 years; M.C.L.A. § 451.810(e) yes 4 years; M.C.L.A. § 451.810(e)
Minnesota MN Statutes Annotated § 80A.68
Section 501 2 years; M.S.A. § 80A.76(j) yes 5 years; M.S.A. § 80A.76(j)
Mississippi Annotated MS Code § 75-71-501 2 years; MS ST § 75-71-725 yes N/A
Missouri Ann. MO Statutes § 409.5-501 2 years; V.A.M.S. § 409.5-509(j)(2) yes 5 years; V.A.M.S. § 409.5-509(j)(2)
Montana MT Code Annotated § 30-10-301 2 years; MCA § 30-10-307(5) yes 5 years; MCA § 30-10-307(5)
Nebraska NE Revised Statutes § 8-1102 3 years; NE ST § 8-1118(4) no N/A
Nevada NV Rev. Statutes Ann. § 90.570 2 years; N.R.S. § 90.670 yes 5 years; N.R.S. § 90.670
New Hampshire NH Rev. Statutes Ann. § 421-B:3 6 years; NH ST § 421-B:25(VII) no N/A
New Jersey NJ Statutes Annotated § 49:3-52 2 years; N.J.S.A. § 49:3-71(g) yes N/A
New Mexico NM Statutes Ann. § 58-13B-30 2 years; N.M.S.A. § 58-13B-41 yes 5 years; N.M.S.A. § 58-13B-41
New York NY Gen. Business Laws § 352-c
N/A; No private right of action under
the NY state securities laws N/A N/A
North Carolina NC Gen. Statutes Ann. § 78A-8 3 years; N.C.G.S.A. § 78A-56(f) yes 5 years; N.C.G.S.A. § 78A-56(f)
North Dakota ND Century Code § 10-04-15 5 years; NDCC § 10-04-17 yes N/A
Ohio OH Revised Code Ann. §1707.41 2 years; OH ST §1707.43(B) yes 5 years; OH ST §1707.43(B)
Oklahoma 71 OK Statutes Annotated § 1-501 2 years; 71 Okl. St. Ann. § 1-509(J) yes 5 years; 71 Okl. St. Ann. § 1-509(J)
Oregon OR Rev. Statutes Ann. § 59.135 2 years; O.R.S. § 59.137(6) yes 3 years; O.R.S. § 59.137(6)
Pennsylvania PA Statutes Annotated 70 § 1-401 1 year; 70 P.S. § 1-504(a) yes 5 years; 70 P.S. § 1-504(a)
Rhode Island Gen. Laws of RI Ann. § 7-11-501 1 year; RI ST § 7-11-606 yes 3 years; RI ST § 7-11-606
South Carolina
Code of Laws of SC 1976
Annotated § 35-1-501 3 years; SC ST § 35-1-509(j) yes 5 years; SC ST § 35-1-509(j)
South Dakota SD Codified Laws § 47-31B-501 2 years; SDCL § 47-31B-509(j) yes 5 years; SDCL § 47-31B-509(j)
Tennessee TN Code Annotated § 48-2-121 2 years; T.C.A. § 48-2-122(h) yes 5 years; T.C.A. § 48-2-122(h)
Texas Ann. TX Civil Statutes Art. 581-33 3 years; TX CIV ST Art. 581-33(H) yes 5 years; TX CIV ST Art. 581-33(H)
Utah UT Code Ann. § 61-1-1 2 years; U.C.A. § 61-1-22(7)(a) yes 4 years; U.C.A. § 61-1-22(7)(a)
Vermont VT Statutes Ann. Title 9 § 5501 2 years; 9 V.S.A. § 5509(j) yes 5 years; 9 V.S.A. § 5509(j)
Virginia Annotated Code of VA § 13.1-502 2 years; VA ST § 13.1-522(D) no N/A
Washington Rev. Code of WA Ann. §21.20.010 3 years; RCWA § 21.20.430(4)(b) yes N/A
West Virginia Annotated Code of WV § 32-1-101 3 years; WV ST § 32-4-410(e) no N/A
Wisconsin WI Statutes Annotated § 551.41 3 years; W.S.A. § 551.59(5) no N/A
Wyoming WY Statutes § 17-4-101 2 years; WY ST § 17-4-122(e) no N/A