Geist

MEMORANDUM **

Plaintiffs-appellants, investors in the American Funds mutual funds, appeal the dismissal with prejudice of their claims that defendants-appellees Capital Group Companies, Inc., Capital Research and Management Company, and American Funds Distributors, Inc. (together, “defendants”), committed securities fraud in violation of §§ 10(b) and 20(a) of the Securi *783 ties Exchange Act of 1934, 15 U.S.C. §§ 78j(b) & 78t(a). The district court held that plaintiffs’ action was untimely because it was filed more than two years after a reasonably diligent plaintiff could have discovered the facts constituting the violation. See Merck & Co. v. Reynolds, — U.S. —, 130 S.Ct. 1784 , 176 L.Ed.2d 582 (2010); 28 U.S.C. § 1658 (b). We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we review de novo a district court’s decision to grant a motion to dismiss, Knievel v. ESPN, 393 F.3d 1068, 1072 (9th Cir.2005). We hold that the district court erred in dismissing the action as time-barred; however, because plaintiffs’ complaint fails to allege scienter with the requisite particularity, we affirm the dismissal but vacate the portion of the order dismissing the complaint with prejudice…