Stockholders Gain Power to Opt Out of Costly Class Actions
The article discusses the drawbacks of securities class actions and argues for the adoption of mandatory individual arbitration for stockholder disputes. Securities class actions are costly and often do not provide meaningful compensation to stockholders. Mandatory individual arbitration is presented as a more efficient and fair alternative, allowing stockholders to choose how to resolve disputes. The authors suggest that individual arbitration can better protect the rights of stockholders and avoid the randomness of traditional class actions.