Last week, the Securities and Exchange Commission (SEC) issued a new policy statement allowing companies to include in their organizational documents arbitration provisions that would require investor claims arising under the federal securities laws to be resolved in arbitration rather than in court. Under the new policy statement, the SEC stated that the inclusion of such provisions will not impede a request by an issuer to accelerate the effective date of its registration statement.
Source: SEC Reverses Stance, Allows Companies to Mandate Arbitration for Investor Claims