Articles Posted in US Court of Appeals for the Eleventh Circuit

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The Eleventh Circuit affirmed the district court's dismissal of plaintiff's complaint against FINRA and its denial of plaintiff's motion to remand the case to Florida state court. The court held that removal was proper in this case because suits against self-regulatory organizations (SROs) like FINRA for violating their internal rules "arise under" the Securities Exchange Act of 1934, 15 U.S.C. 78o(a)(1), (b)(1), and therefore fall under the Act's grant of exclusive jurisdiction to the federal district courts. The court also held that the district court correctly dismissed plaintiff's claim because no private right of action exists for SRO members and associated persons to sue SROs for violating their own internal rules. View "Turbeville v. Financial Industry Regulatory Authority" on Justia Law

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ZPRIM sought review of the SEC's final order finding that petitioners made material misrepresentations to prospective clients in violation of the Investment Advisers Act of 1940, 15 U.S.C. 80b-1. The Eleventh Circuit vacated the violations and monetary sanctions related to the newsletter ZPRIM published in December 2009. In this case, ZPRIM's disclaimer was not boilerplate and was not buried among too many other things, but was explicit, repetitive and linked to the statement about which the SEC complains. Therefore, in light of the clear cautionary statements in the newsletter, the Commission's finding of materiality for that newsletter was not supported by substantial evidence. The court affirmed all other violations and sanctions. View "ZPR Investment Management Inc. v. SEC" on Justia Law