The WSJ reports today that the Securities and Exchange Commission may have tabled the idea of letting a majority of public companies’ shareholders force arbitration of claims — effectively immunizing the companies and their insiders from class actions in court:
Mr. Cox also said at the widely anticipated hearing, involving testimony of all five SEC commissioners, that the SEC didn’t have "pending any proposal or other mature rule" to allow companies to move shareholder disputes into arbitration, instead of courts. SEC staff had explored allowing such a move as part of a broader look into giving holders more choice in the proxy process, an idea independent advisory groups recommended.
Read story here. See also SEC May Grant License to Kill Securities Lawsuits.
Barry Barnett
