New SEC Policy Opens Door to Mandatory Investor Arbitration Regulatory Certainty Creates Strategic Opportunity to Limit Class Action Exposure

On September 17, 2025, the Securities and Exchange Commission issued a groundbreaking policy statement that fundamentally alters the regulatory landscape for public companies considering mandatory arbitration provisions. The Commission has determined that mandatory arbitration provisions requiring investors to arbitrate securities law claims will not impact SEC decisions to accelerate the effectiveness of registration statements. This represents the most significant development in securities law arbitration policy in decades and creates immediate strategic opportunities and considerations for public companies.