Lowe v. National Ass'n of Securities Dealers, Inc.

Opinion for the Court filed by Circuit Judge BROWN.

BROWN, Circuit Judge:

The question before us is whether common law causes of action can be alleged against a Self-Regulatory Organization (“SRO”) for the negligent performance of its duties under the Securities Exchange Act of 1934 (“Exchange Act”). 15 U.S.C. § 78o-3(b). Despite a seemingly impenetrable wall of contrary precedent, plaintiffs argue that while suits challenging an SRO’s discretionary decisions are clearly prohibited, SROs may be sued for the negligent performance of ministerial functions. The district court did not buy it.…