The novel argument, which takes aim at the validity of so-called tolling agreements allowing the SEC to extend the statutory five-year window for filing an enforcement action, has never before been offered in court, and very little has been written on the subject.
That is, outside of an article by a former SEC lawyer, who says there is a solid case for nixing the agreements under federal statute.
Russell Ryan, a King & Spalding partner who formerly served as assistant director of enforcement at the SEC, wrote in a July 24 article for Law360 that the tolling agreements likely run afoul of 28 U.S. Code §?2462, which says an enforcement action “shall not be entertained” unless it is filed within five years of when the claim accrued.
‘Enforcement 40’ for 2020
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