Securities and Exchange Commission v. Bartek, No. 11-10594 (5th Cir. Aug. 7, 2012)
Breaux, Ronald W.
, Gaydos, Lawrence A.
, Kernodle, Jeremy D.
, Paulsen, Ryan
, Black, Emily Westridge
Services: White Collar Criminal Defense
, Securities Class Action Defense and Shareholder Litigation
Defended client Douglas Bartek, the former chairman and CEO of Microtune, Inc. in a stock options backdating case in the Fifth Circuit Court of Appeals. The SEC had sued Bartek and others in 2008, alleging that Microtune awarded backdated stock options to its employees without accounting for them properly. Haynes and Boone maintained that the SEC's complaint was based on conduct that allegedly occurred nearly ten years ago and was time barred by the statute of limitations, 28 U.S.C. § 2462. U.S. District Judge Jane J. Boyle agreed.
On appeal, the Fifth Circuit affirmed. The court rejected the SEC’s argument that the statute of limitations includes a discovery rule, which would have tolled the limitations period until the SEC discovered the conduct. The court also found that the statute barred all of the claims brought by the SEC, including claims seeking a permanent injunction and an officer and director bar.