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Arbitration Of Investors' Claims Against Issuers: An Idea Whose Time Has Come, Barbara Black
Arbitration Of Investors' Claims Against Issuers: An Idea Whose Time Has Come, Barbara Black
Faculty Articles and Other Publications
Ever since the U.S. Supreme Court held that arbitration provisions contained in brokerage customers’ agreements were enforceable with respect to federal securities claims, proposals have been floated to include in an issuer’s governance documents a provision that would require arbitration of investors’ claims against the issuer. To date, however, publicly traded domestic issuers and their counsel have not seriously pursued these proposals, probably because of several legal obstacles to implementation. In addition to these legal obstacles, publicly traded issuers may not have perceived significant advantages to arbitration. Recent legal developments, however, make inclusion of an arbitration provision in a publicly …