A new report by the Consumer Federal of America details the importance of allowing investors who have been cheated or defrauded the ability to band together to access the courts. Recently, several U.S. Securities and Exchange (SEC) officials have signaled that they would be happy to allow companies to prohibit investors from banding together to hold them accountable for wrongdoing.
This would have very bad implications for all investors. Securities litigation is complex and expensive. It would be difficult for cheated investors to bring individual claims and, as a result, would allow corporate defendants off the hook. That’s why allowing them to band together is so important.
The Fair Arbitration Now coalition supports access to courts for all people and the permanent ban on predispute arbitration.
Read the report here.