The opinion of the court was delivered by: WILLIAM C. CONNER
This action is currently before the Court on the motion of plaintiffs, Kay N. Brown, et al., pursuant to Section 476 of the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. No. 102-242, 105 Stat. 2236 (to be codified as Section 27A of the Securities Exchange Act of 1934, 15 U.S.C. § 78aa-i) to reinstate their claims under Section 10(b) of the Exchange Act.
In an Opinion and Order dated October 18, 1991, (the "Opinion and Order") this Court dismissed plaintiffs' Section 10(b) claim as time barred in accordance with the Supreme Court's decision in Lampf, Pleva, Lipkind, Prupis & Petigrow v. Gilberson, 115 L. Ed. 2d 321, 111 S. Ct. 2773 (1991). See Brown v. Hutton Group, 775 F. Supp. 692, 695 (S.D.N.Y. 1991). The Court applied Lampf retroactively pursuant to the Supreme Court's decision in James B. Beam Distilling Co. v. Georgia, 115 L. Ed. 2d 481, 111 S. Ct. 2439 (1991), which was decided on the same day as Lampf. Because of the absence of complete diversity, this Court also dismissed plaintiffs' state law claims, declining to exercise pendent jurisdiction. See Brown, 775 F. Supp. at 695.
On December 19, 1991, Congress amended the Exchange Act by enacting Section 27A to modify the retroactive effect of Lampf. Section 27A provides for reinstatement, upon motion of plaintiffs, of Section 10(b) actions dismissed under Lampf, provided that they were commenced prior to June 19, 1991 and had been timely filed according to the statute of limitations applicable on June 19, 1991. Plaintiffs now move for reinstatement of their Section 10(b) claims pursuant to Section 27A. Defendants oppose this motion.
Familiarity with the facts of this action as set forth in the Court's Opinion and Order and in Judge Walker's prior decision in this matter is presumed.
Motion to Reinstate Section 10(b) Claims
Section 27A of the Exchange Act overrides the retroactive application of the one-and-three-year limitations rule announced by the Supreme Court in Lampf. Section 27A provides, in pertinent part:
(b) EFFECT ON DISMISSED CAUSES OF ACTION. -- Any private civil action implied under section 10(b) of this Act that was commenced on or before June 19, 1991 --
(1) which was dismissed as time barred subsequent to June 19, 1991, and
(2) which would have been timely filed under the limitation period provided by the laws applicable in the jurisdiction, including principles of retroactivity, as such laws existed on June 19, 1991, shall be reinstated on motion by the plaintiff not later than 60 days after the date of enactment of this section.