Arbitration Developments that Could Affect UK Investment in U.S.

Mandatory arbitration is a subject of increasing controversy on both sides of the Atlantic. While provisions imposing mandatory arbitration are an effective device for corporations to avoid private litigation in civil courts, the practice also substantially diminishes shareholders' ability to seek redress for fraud and other misconduct. Indeed, recent decisions by the United States Supreme Court encouraging mandatory arbitration may ultimately undermine the appetite of both British and U.S. investors for certain Americans securities.

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