Davis Polk Discusses Ruling on Statute of Limitations for N.Y.’s Martin Act

On June 12, 2018, the New York Court of Appeals overruled longstanding Appellate Division precedent and held that fraud claims brought by the New York Attorney General (“NYAG”) under the Martin Act (General Business Law article 23-A, § 352, et seq.) are governed by a three-year statute of limitations, and not the six-year statute applicable to actions “based upon fraud,” because the Martin Act expands liability for “fraudulent practices” beyond that recognized under the common law.[1]  The court remitted to the trial court whether the three- or six-year limitations period would apply to related claims brought … Read more