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Litigation

: Arkansas Business Litigation Blog

Arkansas Deceptive Trade Practices Act Case Dismissed From Federal Court

By H. William Allen et al.

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The Western District of Arkansas dismissed a case based on the Arkansas Deceptive Trade Practices Act ("ADTPA") in Shimoda-Atlantic, Inc. v. Financial Industry Regulatory Authority, Inc., 2008 WL 2003160 (W.D. Ark. 5/8/08).

 

Shimoda-Atlantic brought this case against FINRA (formerly NASD) claiming violations of the ADTPA for fraudulent securities registrations. However, securities registrations are governed by the Securities Exchange Act of 1934 (15 U.S.C. § 78a). This act does not provide a private cause of action. In other words, FINRA cannot be sued for a violation of its own rules. The court refused to circumvent the Exchange Act through the ADTPA and dismissed the case.

Full post as published by Arkansas Business Litigation Blog on May 13, 2008 (boomark / email).

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