ARTICLE · 10 OCTOBER 2025

The Potential Impact Of Mandatory Arbitration Provisions On Securities Claims

Winston Taylor

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On Sept. 17, 2025, following a 3-1 vote, the United States Securities and Exchange Commission (SEC) issued a new policy statement announcing its position that the presence of a mandatory arbitration provision...

United StatesLitigation, Mediation & Arbitration

Jeffrey L Steinfeld

This article was originally published in Westlaw Today. Any opinions in this article are not those of Winston & Strawn or its clients. The opinions in this article are the authors' opinions only.

On Sept. 17, 2025, following a 3-1 vote, the United States Securities and Exchange Commission (SEC) issued a new policy statement announcing its position that the presence of a mandatory arbitration provision in a company's governing documents (e.g. charter or bylaws) will not prevent it from accelerating the effectiveness of the company's registration statement, changing its long-held view ("Policy Statement").

The SEC's policy change opens the door to the potential for mandatory arbitration of federal securities and other stockholder claims, which raises important considerations for new and current issuers. This article discusses (1) the SEC's policy change and reasoning behind it, (2) the impact of state law forum requirements, and (3) the implications for the future

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