The Problems With Mandatory Arbitration Of Securities Claims

Law360, New York (August 9, 2017, 11:49 AM EDT) -- A brief remark from SEC Commissioner Michael Piwowar during a July 17, 2017, Q&A has caused great concern among investors that the U.S. Securities and Exchange Commission might soon allow companies to introduce mandatory arbitration clauses into their corporate charters.[1] If allowed, required arbitration would have a fundamental, adverse effect on the ability of investors to protect themselves against wrongdoing by corporations and their directors and officers. If mandatory arbitration were to be widely adopted, investors could be prohibited from asserting claims in federal court under the...
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