Orgone Capital III, LLC v. Daubenspeck

Dist. Ct. did not err in granting defendants’ motion to dismiss as untimely plaintiffs’ common law action alleging fraud, fraudulent concealment of material information, breach of fiduciary duty and negligent misinformation in connection with plaintiffs’ purchase of securities sold by defendants. Relevant limitations period was three years under Illinois statute that covered securities-based claims, and plaintiffs alleged in original complaint that they learned of instant alleged wrongdoings through “PrivCo Report” and congressional hearings that took place by April of 2013, while plaintiffs waited until October of 2016 to file instant complaint. Moreover, although plaintiffs filed amended complaint that redacted all reference to said Report and congressional hearings, Dist. Ct. could still find that instant complaint was untimely, where plaintiff failed to assert facts in amended complaint to contradict fact that plaintiffs were aware of facts in April of 2013 that in exercise of reasonable diligence would have led them to actual knowledge of instant alleged wrongdoings. Ct. also rejected plaintiffs' contention that relevant limitations period was five years.