The high court denied a June petition for a writ of certiorari seeking to overturn the Eleventh Circuit’s determination that a Florida district court correctly applied exceptions in the Federal Tort Claims Act to toss the proposed class action, which accused the SEC of failing to report the Stanford scheme despite having knowledge of its underpinnings through investigations since the late 1990s. The two victims told the justices that the decision oversteps the act’s intended purpose of protecting the SEC in its fulfillment of regulatory functions.
“While immunity for core regulatory functions was the goal of the legislative scheme of the FTCA, decisions such as the Eleventh Circuit’s here would morph conduct-specific exceptions into agency-wide blanket immunity.” the petition said. “Further, by treating the exceptions as a jurisdictional matter and incrementally expanding the conduct purported to be covered by such exceptions, the Eleventh Circuit seeks to secure unprecedented immunity for the SEC.”
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