Fidelity immune from improper stock lending lawsuit
23 April 2019 Massachusetts
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The First Court of Appeals has deemed Fidelity Brokerage Services LLC immune from a lawsuit alleging improper stock lending activities based on an immunity provision in the Bank Secrecy Act.
The allegation by William and Peter Deutsch stated that Fidelity had improperly filed a suspicious activity report with the federal law enforcement agencies to hide improper stock lending activities.
At the US Court of Appeals for the First Circuit on 17 April, William and Peter Deutsch along with their financial advisor, AER Advisors, had their complaint against Fidelity dismissed as there was 鈥渘o reason to reverse the judge鈥檚 thoughtful decision鈥�.
The provision cited that a 鈥渇inancial institution that makes a voluntary disclosure of any possible violation of law or regulation to a government agency [...] shall not be liable to any person under any law or regulation of the US, [or] any constitution, law, or regulation of any State [...] for such disclosure鈥�.
The allegation by William and Peter Deutsch stated that Fidelity had improperly filed a suspicious activity report with the federal law enforcement agencies to hide improper stock lending activities.
At the US Court of Appeals for the First Circuit on 17 April, William and Peter Deutsch along with their financial advisor, AER Advisors, had their complaint against Fidelity dismissed as there was 鈥渘o reason to reverse the judge鈥檚 thoughtful decision鈥�.
The provision cited that a 鈥渇inancial institution that makes a voluntary disclosure of any possible violation of law or regulation to a government agency [...] shall not be liable to any person under any law or regulation of the US, [or] any constitution, law, or regulation of any State [...] for such disclosure鈥�.
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