California Codes
Cal. Corporations Code § 25506 (2026)
Civil Liability
✓ leginfo export of Sept. 26, 2026 (applied Oct. 1, 2026)
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(a)For proceedings commencing before January 1, 2005, no action shall be maintained to enforce any liability created under Section 25500, 25501, or 25502 (or Section 25504 or Section 25504.1 insofar as they related to those sections) unless brought before the expiration of four years after the act or transaction constituting the violation or the expiration of one year after the discovery by the plaintiff of the facts constituting the violation, whichever shall first expire.
(b) For proceedings commencing on or after January 1, 2005, no action shall be maintained to enforce any liability created under Section 25500, 25501, or 25502 (or Section 25504 or Section 25504.1 insofar as they related to those sections) unless brought before the expiration of five years after the act or transaction constituting the violation or the expiration of two years after the discovery by the plaintiff of the facts constituting the violation, whichever shall first expire.
Notes of Decisions
Cited in 32
cases (3 in the last 5 years), 1970–2024 · leading case: Pedro v. City of Los Angeles, 229 Cal. App. 4th 87 (Cal. Ct. App. 2014).
Pedro v. City of Los Angeles, 229 Cal. App. 4th 87 (Cal. Ct. App. 2014). “) Other statutes state that an action must be commenced within a certain period of time after the “discovery” of facts without expressly stating that the plaintiff has a duty of inquiry.”
Bowden v. Robinson, 67 Cal. App. 3d 705 (Cal. Ct. App. 1977). “(Corp. Code, § 25506.) Again, the Legislature is expressing an intent to provide new and liberalized actions and remedies for the victims of corporate *715 security violations while, at the same time, preventing speculation by the alleged victim at the expense of innocent…”
Stichting Pensioenfonds ABP v. Countrywide Fin. Corp., 802 F. Supp. 2d 1125 (C.D. Cal. 2011). “Cal. Corp.Code § 25506(b) (“no action shall be maintained to enforce any liability created under Section 25500, 25501, or 25502 (or Section 25504 or Section 25504.”
Allyn v. Wortman, 725 So. 2d 94 (Miss. 1998). “They also contend that Cal. Corp. Code § 25506 requires actual notice to start the running of the statute of limitations, and any assertion to the contrary would be a disputed question of fact making a Rule 12 dismissal inappropriate.”
Washington v. Baenziger, 673 F. Supp. 1478 (N.D. Cal. 1987). “As these motions raise matters outside the scope of the pleadings, pursuant to Rule 12(b) they are treated as motions for summary judgment and analyzed in conjunction with the summary judgment motion of the FF defendants. 3 .”
In re Verisign, Inc., Derivative Litig., 531 F. Supp. 2d 1173 (N.D. Cal. 2007). “” Cal. Corp.Code § 25506(b). The five-year bar is a strict limit that may not be tolled.”
In re Heritage Bond Litig., 289 F. Supp. 2d 1132 (C.D. Cal. 2003). “” Cal. Corp.Code § 25506. The four-year bar set forth in § 25506 is an absolute limit on claims.”
Byelick v. Vivadelli, 79 F. Supp. 2d 610 (E.D. Va. 1999). “Cal. Corp.Code § 25506 (West 1999). Byelick asserts that § 25506 does not on its face refer to “inquiry notice” and hence that the statute of limitations under the California Corporations Code is triggered only by actual notice.”
Fraser v. Fiduciary Trust Co. Int'l, 417 F. Supp. 2d 310 (S.D.N.Y. 2006). “” Cal. Corp.Code § 25506. Section 25502 provides for damages for violations of § 25402.”
In re Nat'l Mortg. Equity Corp. Mortg. Pool Certificates Sec. Litig., 636 F. Supp. 1138 (C.D. Cal. 1986). “STATE SECURITIES LAW CLAIMS The applicable statute of limitations for the Savings Banks’ state securities law claims is Cal.Corp.Code § 25506. That statute requires plaintiffs to bring their actions within four years after the act upon which the violation is based or within one…”
Anschutz Corp. v. Merrill Lynch & Co., 785 F. Supp. 2d 799 (N.D. Cal. 2011). “However, based on the discussion of scienter under Section 10(b), the Court concludes that TAC has adequately pled scienter for purposes of Corporations Code section 25500. D. Statute of limitations DBSI asserts that plaintiffs Exchange Act and Corporations Code claims are…”
Lubin v. Sybedon Corp., 688 F. Supp. 1425 (S.D. Cal. 1988). “Cal.Corp.Code § 25506 (West 1988). Section 25506.”
Cal. Corporations Code § 25506(a): 2 cases
In re WorldCom, Inc., 377 B.R. 77 (Bankr. S.D.N.Y. 2007).
Scognamillo v. Credit Suisse First Boston, 254 F. App'x 669 (9th Cir. 2007).
Cal. Corporations Code § 25506(b): 5 cases
Stichting Pensioenfonds ABP v. Countrywide Fin. Corp., 802 F. Supp. 2d 1125 (C.D. Cal. 2011). “Cal. Corp.Code § 25506(b) (“no action shall be maintained to enforce any liability created under Section 25500, 25501, or 25502 (or Section 25504 or Section 25504.”
In re Verisign, Inc., Derivative Litig., 531 F. Supp. 2d 1173 (N.D. Cal. 2007). “” Cal. Corp.Code § 25506(b). The five-year bar is a strict limit that may not be tolled.”
Anschutz Corp. v. Merrill Lynch & Co., 785 F. Supp. 2d 799 (N.D. Cal. 2011). “However, based on the discussion of scienter under Section 10(b), the Court concludes that TAC has adequately pled scienter for purposes of Corporations Code section 25500. D. Statute of limitations DBSI asserts that plaintiffs Exchange Act and Corporations Code claims are…”
Jackson v. Fischer, 931 F. Supp. 2d 1049 (N.D. Cal. 2013).
Wang v. Bear Stearns Companies LLC, 14 F. Supp. 3d 537 (S.D.N.Y. 2014).
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