SEC Reviews IPO Policy on Mandatory Shareholder Arbitration

Reported about 5 hours ago

The U.S. Securities and Exchange Commission (SEC) is set to vote on a potential policy shift that would permit companies going public to require shareholders to resolve disputes through private arbitration instead of court litigation. This change, which critics argue could diminish investor rights, follows ongoing complaints from corporate groups about shareholder class action lawsuits. Consumer advocates warn that such a move could hinder accountability and limit the legal recourse for small investors.

Source: YAHOO

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