One of the most consequential developments in securities litigation has been the SEC’s shift toward permitting companies to issue stock conditioned on mandatory arbitration of investor disputes. If broadly adopted, this approach could fundamentally reshape the enforcement landscape. It provides issuers with a powerful mechanism to sidestep class actions. At the same time, it invites the risk of coordinated mass filings before arbitral forums.
The long-term implications for investor protection, corporate exposure, and dispute resolution strategy remain unsettled, but the impact on securities litigation practice is already being felt.
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Last updated on January 19th, 2026
