On June 11, the U.S. Supreme Court unanimously held that filing a class action lawsuit does not toll the statute of limitations for the class to file the same claims again in the future. This means that if the class files claims but is denied class certification, it cannot return to court and file the same claims again if the limitations period expired during the course of the previous litigation. In China Agritech, Inc. v. Resh, a class of stockholders timely filed a lawsuit against China Agritech in 2011, but class certification was denied. In 2012, the class filed a second timely lawsuit alleging the same claims, but again class certification was denied. In 2014, after the limitations period had passed, the class attempted to file a third lawsuit alleging the same claims. The court held that although individual class members’ deadlines to file their own lawsuits were tolled by the filing of a class action lawsuit, the class’ deadlines were not. Justice Ginsburg explained, “there is little reason to allow plaintiffs who passed up opportunities to participate in the first (and second) round of class litigation to enter the fray several years after class proceedings first commenced.” Although China Agritech is a securities case and not an employment case, the court’s holding has benefits to employers as well. For example, after this ruling, a purported class of employees could not repeatedly file lawsuits against an employer alleging wage and hour violations after the statute of limitations had passed. While individual employees might in some circumstances be able to file their own lawsuits after the limitations period expired if their class was denied certification, employers generally will find litigating against a single employee to be less burdensome than litigating against a class.
Supreme Court Says No To Repeat Class Actions After Statute Of Limitations
Douglas M. Oldham
Of CounselRELATED ARTICLES
COVID-19 Class Action Litigation Heats Up Over Temperature Checks
October 30, 2020 | Currents - Employment Law, Employee Health Issues
SCOTUS Favors Employers’ Religious Liberties Over Employee Rights
July 9, 2020 | Currents - Employment Law, Employment Discrimination, Supreme Court Watch
Here’s a Tip – Restaurant Workers Allege Wage and Hour Violations Amid COVID-19 Pandemic
June 26, 2020 | Currents - Employment Law
Public Nuisance Claims Emerge In COVID-19 Workplace Litigation Filings
June 19, 2020 | Currents - Employment Law, Employee Health Issues
COVID-19 Related Workplace Litigation Picks Up Steam
June 12, 2020 | Currents - Employment Law, Employee Health Issues
COVID-19 Class Action Litigation Heats Up Over Temperature Checks
October 30, 2020 | Currents - Employment Law, Employee Health Issues
SCOTUS Favors Employers’ Religious Liberties Over Employee Rights
July 9, 2020 | Currents - Employment Law, Employment Discrimination, Supreme Court Watch
Here’s a Tip – Restaurant Workers Allege Wage and Hour Violations Amid COVID-19 Pandemic
June 26, 2020 | Currents - Employment Law
Public Nuisance Claims Emerge In COVID-19 Workplace Litigation Filings
June 19, 2020 | Currents - Employment Law, Employee Health Issues
COVID-19 Related Workplace Litigation Picks Up Steam
June 12, 2020 | Currents - Employment Law, Employee Health Issues
No Right, Just Rules: Court Lacks Jurisdiction Over Steakhouse Managers’ Claims
October 3, 2019 | Currents - Employment Law, Fair Labor Standards Act
Agreement to Arbitrate Acknowledged, Not Accepted, Eighth Circuit Says
July 17, 2019 | Currents - Employment Law, High Stakes Employment Issues, Fair Labor Standards Act, Employment Lessons
Divided SCOTUS Affirms Auer Deference to Agencies’ Interpretations
July 3, 2019 | Currents - Employment Law, Supreme Court Watch
Misidentification of Employer in Discrimination Charge Not Enough for Dismissal
June 14, 2019 | Currents - Employment Law, Employment Discrimination
Supreme Court Holds Title VII Charge-Filing Is Mandatory but Not Jurisdictional
June 7, 2019 | Currents - Employment Law, Supreme Court Watch
Will There Be An Epic Backlash?
June 27, 2018 | Fair Labor Standards Act, Supreme Court Watch, Currents - Employment Law
U.S. Supreme Court is Asked to Answer the Question: What Do You Mean by ‘Sex’?
September 11, 2017 | Employment Discrimination, Workplace Culture and Conduct, Currents - Employment Law
Did a Lower Court Throw Schools an IEP Life Raft?
July 5, 2017 | Supreme Court Watch, Currents - Employment Law
Minnesota Human Rights Act’s Statute of Limitations Tolls When Employer Investigates Discrimination Complaints
April 13, 2017 | Employment Discrimination, Currents - Employment Law
Update on Trump’s Line-Up for DOL and Supreme Court
March 28, 2017 | Employment Lessons, Currents - Employment Law
Supreme Court Nominee Gorsuch Receives ABA’s Highest Rating
March 10, 2017 | Supreme Court Watch, Currents - Employment Law
Transgender Bathroom Case Sent Back to Lower Courts by Supreme Court
March 8, 2017 | Employment Discrimination, Currents - Employment Law
Fifth Circuit Triples Down on the Legality of Class Action Waivers in Arbitration Agreements
August 15, 2016 | Employment Discrimination, Currents - Employment Law
Who Knew? U.S. Supreme Court Justices Offer Employment Tips
February 26, 2015 | Employment Discrimination, Currents - Employment Law
Supreme Court Examines “Supervisor” Definition In Bias Suits
November 27, 2012 | Employment Discrimination, Currents - Employment Law
On The Radar: Supreme Court Set to Resolve Circuit Split as to Definition of Supervisor Under Title VII
October 24, 2012 | Employment Discrimination, Currents - Employment Law
Supreme Court's Ruling on Healthcare Impacts Employers
June 29, 2012 | Employee Health Issues, Currents - Employment Law
U.S. Supreme Court Strikes Down Employment Provision in Arizona Immigration Law
June 27, 2012 | Employment Discrimination, Currents - Employment Law
Supreme Court Issues Long-Awaited Decision in Christopher v. SmithKline Beecham Corp.
June 18, 2012 | Traditional Labor, Currents - Employment Law
RELATED PRACTICE AREAS
Subscribe
Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.
View Subscription Center