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—providing issuers with a powerful mechanism to sidestep class actions while simultaneously inviting 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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