The U.S. Supreme Court held that an insider's failure to file a disclosure report under Section 16(a) of the Securities Exchange Act of 1934, as amended, does not toll the two-year statute of limitations for claims seeking recovery of "short-swing" profits under Section 16(b) of such Act. Under Section 16(b), profits realized by insiders (i.e., 10% shareholders of public companies) from the purchase and sale (or sale and purchase) of a public company's equity securities within a 6-month period are subject to disgorgement. The court found that the two-year statute of limitations began to run at the time the profit was realized.
Credit Suisse Securities (USA) LLC v. Simmonds, No. 10-1261 (U.S. Sup. Ct. March 26. 2012).