The 2 year statute of limitations in a private securities fraud action begins to run when plaintiffs know or reasonably should know that fraud has occurred. Fraud in a typical securities case may involve an issuer of securities who makes false, misleading or incomplete statements about its business or prospects. To be successful, the plaintiff must show that the false or misleading statements or omissions were made with an intent to deceive or defraud - a state of mind technically referred to as scienter.