Where investors who lost their retirement savings brought claims against the lead underwriter, claiming it was liable as a broker dealer or “controlling person” under the Securities Exchange Act, the pursuit of arbitration did not toll the federal statute of limitations, so the federal claim was properly dismissed as time barred, but a claim based on New Jersey law was timely filed, and the order denying leave to amend is reversed.
Judgment is affirmed in part; reversed in part.
Zarecor v. Morgan Keegan & Company, Inc. (MLW No. 68267/Case No. 13-3315 – 15 pages) (U.S. Court of Appeals, 8th Circuit, Colloton, J.) Appealed from U.S. District Court, Eastern District of Arkansas, Miller, J. (Howard B. Prossnitz, Chicago, argued for appellant; Peter Drake Mann appeared on the brief) (George Chester Freeman III, New Orleans, argued for appellee; David B. Vandergriff and Larry E. Mobley appeared on the brief).
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