Early this week, several announcements crossed the WTT news desk indicating that the U.S. Supreme Court agreed to hear arguments regarding issues that have developed around a long-standing race-discrimination case in which RR. Donnelley (NYSE: DNY) has been involved. We decided to compile the available information and summarize what has been happening with this case for Premium Access Members.

If a publicly traded company is involved in litigation, it is standard to include a statement in SEC filings like this: "…the company is a party to certain litigation arising in the ordinary course of business…" But this case is different and has broader implications. With the Donnelley case, the U.S. Supreme Court will now decide which statute of limitations - federal or state - should apply in federal civil rights lawsuits.

According to an article appearing in the Chicago Tribune on Tuesday, attorneys said that a revision to the Civil Rights Act in 1990 intended for a four-year statute of limitations to apply to all civil rights cases brought after the act passed. The state of Illinois had a two-year statute of limitations in place when the lawsuit was filed.

Background
In total, Donnelley was involved in four cases regarding plant closures, including the shuttering of the nearly 1,000-employee Lakeside Press in Chicago resulting from the loss of the Sears catalog contract, in 1993:

Adams, et al. v. R.R. Donnelley & Sons Co.;
Jefferson, et al. v. R.R. Donnelley & Sons Co.,
Gerlib, et al. v. R.R. Donnelley & Sons Co.;
Jones, et al. v. R.R. Donnelley & Sons Co.