Merck & Co. v. Reynolds

Summary

The Court, in an opinion by Justice Breyer joined by Chief Justice Roberts and Justices Kennedy, Ginsburg, Alito, and Sotomayor, affirmed the judgment that the investors’ securities-fraud complaint was timely. Section 1658(b)(1)’s two-year limitations period begins upon actual discovery, or discovery by a reasonably diligent plaintiff, of the facts constituting the violation, including scienter. Inquiry notice alone does not start the period, even if the plaintiff fails to investigate. Merck had not shown discovery or constructive discovery of facts indicating scienter more than two years before suit. Justice Stevens concurred in part and in the judgment, reserving whether constructive discovery suffices because that question did not affect the outcome. Justice Scalia, joined by Justice Thomas, concurred in part and in the judgment, agreeing that discovery of scienter was required but concluding that only actual discovery starts the limitations period.