SEC Keeps Options Open for Mandatory Shareholder Arbitration


Paul Helms said “you can see arguments on both sides” for using mandatory arbitration or class-action litigation to resolve securities disputes. While “arbitration can have benefits, even for the average investor,” there can be “reasonable disagreement about the mechanism” for resolving disputes, Mr. Helms continued. “Is arbitration the right way to do that? The harder question is whether class arbitration is the way to do that. That’s really the lurking question here.”