Private Equity Firm Broadstreet Sues to Stop SEC Investigation

Private equity firm Broadstreet Inc. asked a Texas federal court to block a Securities and Exchange Commission probe into the firm’s real-estate development plans.

Broadstreet’s targeted activities don’t “fall within the scope” of the SEC’s authority to regulate securities, the complaint, filed Thursday in the US District Court for the Northern District of Texas, said. Broadstreet “does not offer any securities or conduct business within the securities industry,” it said.

The complaint takes aim at the agency’s requests for “seemingly endless sittings of investigative testimony from Plaintiffs” and its use of subpoenas requesting documents about the firm’s development of ...