In a case of awkward timing, a judge on Tuesday dismissed a securities class action against Transocean Ltd. on the basis of an appellate decision that the U.S. Supreme Court agreed to consider reversing just the day before.
In a 10-page ruling, U.S. District Judge Lorna Schofield in Manhattan dismissed as time-barred claims that Transocean misled shareholders about its safety record. Schofield based her decision on a June 2013 ruling by the U.S. Court of Appeals for the Second Circuit, which adopted a defendant-friendly approach to determining whether the statute of repose for securities claims could be tolled in litigation against IndyMac. The Supreme Court granted cert in that case, Public Employees’ Retirement System of Mississippi v. IndyMac MBS Inc., on Monday.
