Ron Stein, President of the Network for Investor Action and Protection (NIAP), Statement on the Second Circuit Court of Appeals Ruling on Net Equity:
“NIAP strongly disagrees with the appeals court’s ruling, which is another blow to small investors who merely relied on the information their broker gave them. The court’s regrettable decision underscores the need for Congress to reinforce securities laws that were intended to protect the small investors harmed by this decision and the actions of the SIPC Trustee.
“We are encouraged by the bi-partisan efforts in Washington, led by Rep. Scott Garrett, to pass legislation clarifying original Congressional intent. This action is necessary to prevent victims of securities fraud from further victimization by the institutions created to protect them.”
