A federal appeals court has ruled that the statute of limitations bars the U.S. Securities and Exchange Commission from bringing stock option backdating charges against two former Microtune Inc. executives more than five years after the alleged illegal conduct. The 5th U.S. Circuit Court of Appeals held that the discovery rule which suspends the statute of limitations until the wrongful activity could have reasonably been discovered did not apply because there was no fraudulent concealment claim. The SEC abandoned that claim on appeal.
The 5th Circuit on Aug. 7 affirmed a February 2011 ruling by U.S. District Judge Jane Boyle of the Northern District of Texas. In her ruling, she granted summary judgment in favor of former Microtune chief executive officer Douglas Bartek and former general counsel Nancy Richardson, holding that the charges were time-bared.
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