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The SEC Signs on to Arbitration
FEATURED
September 29, 2025
The SEC Signs on to Arbitration
By: George Calhoun
Early last week, on September 17, 2025, the SEC announced that it will no longer consider the presence of a mandatory arbitration provision in a company’s charter or bylaws when deciding whether to accelerate the effectiveness of a registration statement. This policy shift will permit companies to include arbitration clauses in their governing documents to require securities litigants (including class action plaintiffs) to pursue their claims in arbitration proceedings rather than court cases. The decision leaves open how arbitration provisions might apply in direct actions versus derivative actions. Nonetheless, this could result in a significant reduction in private securities litigation. The SEC focused its decision on the recent trend in U.S. Supreme Court precedent concerning the Federal Arbitration Act and…
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Cal. High Court Softens Draconian Arbitration Fee Rule
August 19, 2025
Cal. High Court Softens Draconian Arbitration Fee Rule
By: Robert Ward
California law has often tested just how much room the Federal Arbitration Act (FAA) leaves for states to regulate consumer arbitration agreements. Last week, in Hohenshelt v. Superior Court,[1] the California Supreme Court determined that at least one claimant-favoring provision of the California Arbitration Act (CAA), California Code of Civil Procedure § 1281.98 comes close to, but does not cross, that line. At the same…
Ready, Set, Go: More States Adopt Privacy Laws
July 30, 2025
Ready, Set, Go: More States Adopt Privacy Laws
By: Nicole Kardell
Note the below chart was updated on July 24, 2025 to reflect recent developments. The number of U.S. states that have adopted privacy laws grows regularly. Fortunately, there seems to be quite a bit of crossover, at least when it comes to thresholds that companies must meet in order to trigger compliance requirements. We provide below a chart that summarizes these thresholds by state, including…
Suit Against FTC Asks: Did Agency Change Advertising Rules in Middle of Game?
September 17, 2010
Suit Against FTC Asks: Did Agency Change Advertising Rules in Middle of Game?
By: Ifrah Law
Is there a way to hold a government agency like the Federal Trade Commission (FTC) accountable for the cost to businesses of what a company says are abrupt and systemic changes in regulatory standards? POM Wonderful LLC, a Los Angeles-based juice company, is trying to do just that by suing the FTC in District Court. The FTC is reportedly investigating POM for alleged false advertising…
In Rare Ruling, Court Permits Discovery Into Motives Behind FTC Subpoena
July 26, 2010
In Rare Ruling, Court Permits Discovery Into Motives Behind FTC Subpoena
By: Ifrah Law
When a U.S. magistrate judge in the District of Columbia issued his ruling in Federal Trade Commission v. Bisaro on July 13, 2010, permitting limited discovery of certain FTC officials regarding an agency subpoena, it had been more than three decades since the D.C. Circuit had found that “extraordinary circumstances” were present that warranted discovery in a subpoena enforcement action. Subpoena enforcement proceedings are typically…
