Group says NASDAQ's former parent company, NASD, not immune from suits alleging fraud

Contact: Dave Mohel, 703-347-9454, dave@blueskinsolutions.com

WASHINGTON, Oct. 27, 2011 /Christian Newswire/ -- The American Civil Rights Union filed a brief on Wednesday supporting a complaint that the National Association of Securities Dealers should be held accountable for misleading members as to a proxy vote over a change in bylaws.

"NASD's claim of immunity highlights the threat posed by Self Regulating Organizations (SROs) operating outside laws designed to protect investors," said ACRU General Counsel Peter Ferrara, who wrote the brief.

The brief states:

"The Constitution says that the legislative power is delegated to Congress, which covers regulatory rules as compelling as any statute. While private self-regulatory organizations are desirable, they must remain accountable and subject to the rule of law, especially since they exercise regulatory power outside of democratic accountability and control. Excessively broad immunity from suit denies such accountability and control under law."

The ACRU's brief supports a plaintiff request for the Supreme Court to accept the case on a writ of certiorari, noting that several appeals courts have differed on the merits of the case, Standard Investment Chartered, Inc. v. National Association of Securities Dealers, et al.

The American Civil Rights Union (ACRU) is dedicated to protecting the civil rights of all Americans by publicly advancing a Constitutional understanding of our essential rights and freedoms. The ACRU monitors and counters organizations that threaten our Constitutional rights. It files amicus briefs in critical civil rights cases, and defends the Constitution in print and broadcast media and on the Internet.