May. 29 at 4:24 AM
$ARDS if you plan to sue, the window is closing: Filing a Civil Lawsuit (Securities Fraud)
If you believe the company or its executives misled investors and you are looking to join or initiate a civil lawsuit to recover funds, the legal windows are much tighter.
The 2-Year / 5-Year Rule: Under the Securities Exchange Act, civil lawsuits for securities fraud must be filed within 2 years after you discover the facts constituting the violation.
The Statute of Repose: There is a hard legal cap of 5 years after the actual violation occurred, regardless of when you discovered the fraud. Once that 5-year mark hits, the liability is extinguished.
Criminal Prosecution: For context, if the federal government (DOJ) pursues the company, they have a 6-year statute of limitations to bring criminal securities fraud charges.