High Court Rejects Broker’s FINRA Immunity, Status Challenge

A stockbroker and his companies can’t get the U.S. Supreme Court to weigh in on whether securities regulator FINRA is a state actor with immunity for its investigative conduct, after the court rejected their petition Monday.

John Hurry and several of his companies argued that the Financial Industry Regulatory Authority, a self-regulatory organization meant to police industry participants, only claimed to be a state actor when convenient and shouldn’t be immune from suits over how it conducts its investigations, the petition said.

Hurry, whose companies included broker-dealers Scottsdale Capital Advisors Corp. and Alpine Securities Corp., challenged a FINRA investigation that ...