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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

When should you bring a securities fraud lawsuit?

While pursuing actions for securities fraud is important, knowing when to pursue them is critical, because the time frame for bringing such actions can be short. Under federal law, the window for bringing these actions is two years after such fraud is discovered, or five years after the actual fraud occurred.

These time frames are based on Section 10(b) of the Securities Exchange Act as well as SEC Rule 10b-5. While these windows may seem short, before the Sarbanes Oxley Act was enacted, the time frames were even shorter. Essentially, securities fraud claims were barred if they were brought one year after such fraud was discovered and three years after the fraud actually occurred. 

While the window for bringing federal securities fraud claims may be relatively short, the same may not apply to state based anti securities fraud claims. Depending on the type of misrepresentation, an aggrieved party may have up to six years to bring a claim. Additionally, a party may avail itself of more time to bring a lawsuit based on equitable tolling statutes. Essentially, if a defrauding party actively prevented the other party from discovering fraud, the aggrieved party would have additional time from the time that the fraud occurred to bring a lawsuit.

Because of the complexities in gathering information to initiate a securities fraud lawsuit, it is important to get an experienced attorney involved as soon as possible. As such, if you have questions about whether you were defrauded, a skilled lawyer can answer them. 

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