In Alonso v. Weiss, No. 12 C 7373 (N.D. Ill. July 22, 2013), plaintiffs asserted that a court-appointed receiver failed to disseminate quarterly account statements to the limited partners of several funds in violation of § 206(4) of the Investment Advisers Act of 1940 (“IAA”), 15 U.S.C. § 80b-6, and SEC Rule 206(4)-2. The rule requires an investment adviser to determine that there is a reasonable basis to believe that a qualified custodian was providing quarterly account statements to the limited partners. Plaintiffs sought rescission of the funds' advisory agreements pursuant to § 215(b) of the IAA. Defendants moved to dismiss, asserting that the claim was barred by the statute of limitations for rescission pursuant to the IAA, which is the earlier of one year from discovery or three years from the violation. Plaintiffs argued that Sarbanes-Oxley’s limitations period applied, which provides that a claim involving “fraud, deceit, manipulation, or contrivance in contravention of a regulatory requirement concerning the securities laws” must be brought within two years of discovery or five years from the violation. 28 U.S.C. § 1658(b). The Sarbanes-Oxley limitations provision applies to “a private right of action that involves a claim of fraud, deceit, manipulation, or contrivance.” 28 U.S.C. § 1658(b). Although § 206(4) speaks of “fraudulent, deceptive, or manipulative” practices, it does not require fraudulent intent. The court held: "By its plain terms, this provision applies only to fraud-based claims" and not claims that that do not have fraudulent intent as an element. Thus, the court granted defendants' motion to dismiss.