Standard Investment Chartered Inc. v. NASD (2d Cir., Feb. 11, 2011)

Standard Investment Chartered Inc. v. NASD

Feb. 11, 2011

In a per curiam opinion, the Second Circuit Court of Appeals held that SRO officers have absolute immunity from private damages suits relating to alleged misstatements in the proxy solicitation of members to amend its bylaws in connection with the merger of NYSE Regulation and the NASD to form FINRA. The court expanded the list of situations in which an SRO officer has absolute immunity from suit, and noted that amendments of an SRO's by-laws are "inextricable" from its role as a regulator.