{"ID":55693,"name":"Merck \u0026 Co. v. Reynolds","href":"https:\/\/api.oyez.org\/cases\/2009\/08-905","view_count":0,"docket_number":"08-905","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Merck \u0026 Co., Inc., et al.","second_party":"Richard Reynolds, et al.","timeline":[{"event":"Granted","dates":[1243314000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/40513"},{"event":"Argued","dates":[1259560800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/40514"},{"event":"Decided","dates":[1272344400],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/40515"}],"lower_court":{"ID":8,"name":"United States Court of Appeals for the Third Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/8"},"facts_of_the_case":"\u003Cp\u003EInvestors brought a securities fraud class action suit against Merck \u0026amp; Co. in a New Jersey federal district court. They alleged the company had misled investors about the drug Vioxx\u0027s safety and commercial viability. Merck moved to dismiss the claim arguing that the investors had been put on \u0022inquiry notice\u0022 more than two years before they filed suit, and thus the statute of limitations had run. The federal district court agreed and dismissed the suit.\u003C\/p\u003E\n\u003Cp\u003EOn appeal, the U.S. Court of Appeals for the Third Circuit reversed. It recognized that under the \u0022inquiry notice\u0022 standard, plaintiffs are put on notice for the purpose of the statute of limitations in federal securities fraud litigation at the \u0022possibility\u0022 of wrongdoing. Moreover, the court held that the investors had not been put on \u0022inquiry notice\u0022 more than two years before they filed suit, and thus the statute of limitation had not run.\u003C\/p\u003E\n","question":"\u003Cp\u003EDid the U.S. Court of Appeals for the Third Circuit err in its application of the \u0022inquiry notice\u0022 standard?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo. The Supreme Court affirmed the Third Circuit, holding that the statute of limitations begins to run once the plaintiff actually discovered or a reasonably diligent plaintiff would have discovered the facts constituting the violation \u2013 whichever comes first. With Justice Stephen G. Breyer writing for the majority, the Court noted that \u0022inquiry notice\u0022 is only useful to the extent it describes the circumstances when a reasonably diligent plaintiff would have begun to investigate.\u003C\/p\u003E\n\u003Cp\u003EJustice John Paul Stevens wrote separately, concurring in part and concurring in the judgment. He stated that much of the discussion in Part II of the majority opinion was unnecessary. Justice Antonin G. Scalia, joined by Justice Clarence Thomas, concurred in part and concurred in the judgment. He disagreed with the majority holding to the extent it adopted a reasonably diligent person standard for when the statute of limitations begins to run.\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":33978,"name":"Kannon K. 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