An investor discovers a violation but waits 15 months after discovery, and four years after the sale, to file suit. Is the suit permitted under Section 410?

ANo; the three-year outside period after the sale has expired even though fewer than two years have elapsed since discovery✓ Correct answer
BYes; every claim may be filed within five years of the sale
CYes; the two-year discovery period always overrides the three-year outside period
DNo; every claim must be filed within six months of discovery

Explanation

Why A — No; the three-year outside period after the sale has expired even though fewer than two years have elapsed since discovery

Section 410(f) bars the action at the earlier of three years after the sale or two years after discovery. Filing four years after the sale is untimely even though only 15 months have elapsed since discovery.

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