As reported in Bloomberg News (subscription required), New York’s city and state pension funds, along with major institutional investors including the Chicago Teachers’ Pension Fund and Denver Employees Retirement Plan, are urging the U.S. Securities and Exchange Commission (SEC) to reverse a recent policy permitting companies to push shareholder fraud claims into private arbitration.
In a November 3 letter to SEC Chairman Paul Atkins, the group criticized the September decision as “costly, unproven, and unwieldy,” warning that forced arbitration undermines transparency and accountability for investors. “Forced arbitration creates costly, uncertain, and inefficient proceedings that benefit no one—not participants, not plan sponsors, and ultimately not the companies themselves,” said Michael D. Scott, executive director of the National Coordinating Committee for Multiemployer Plans, in a statement to Bloomberg Law.
Read the full article on the Bloomberg News (subscription required) website.
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