Judge Crotty ruled yesterday that a proposed new class representative’s claims against Barclays (concerning the sale of American Depository Shares from 2006-2008) were barred by the Securities Act’s statute of repose, and thus untimely. The original class representative died during the litigation. The plaintiffs argued that the claims of the replacement plaintiff related back under Rules 15 and 21. Judge Crotty found, however, that the Securities’ Act statute of repose barred claims raised after three years regardless of tolling or other principles. Under the Rules Enabling Act, Rules 15 and 21 could thus not be used to enlarge or modify a substantive right — in this case, the ability to relate the new class representative’s claims back to those of the original class representative.
