Forced Shareholder Arbitration
SEC Policy Change to Gut Shareholder Rights
On September 17, 2025, the Securities and Exchange Commission (SEC) changed its longstanding shareholder forced arbitration policy. The new policy is a radical shift that puts investors at risk of massive losses, shields companies that commit fraud from public accountability, and could depress shareholder value and stock prices while undermining confidence in our capital markets.
This stark reversal from the Commission’s well-established, decades-old policy will inject chaos into U.S. markets, creating a more volatile environment for investors, shareholders, and businesses – and any company that includes a forced arbitration provision in its IPO filing will face legal challenges that will delay the offering indefinitely and result in significant risk and expense.
Resources
In the News
- Opposition Builds to Atkins' Corporate Governance Reforms
- International investor group raises concerns over SEC mandatory arbitration, proxy-voting moves
- SEC’s ‘Make IPOs Great Again’ Plan Hits Shutdown Stumbling Block
- Investor Advocates Criticize SEC's New Arbitration Stance
- SEC Chief Fast Tracks Agenda, Averting Slog Through Rule Changes
- SEC's new stance on mandatory arbitration changes risk landscape for IPOs, attracts D&O market attention
AAJ is working with our member attorneys to convince Congress that insurance minimums for federal interstate motor carriers must be increased to reflect the much higher costs of devastating truck crashes compared to four decades ago. Join the Fight.
