Press Release
AAJ Praises Legislation to Prohibit the Use of Forced Arbitration Against Investors
Sen. Jeff Merkley and Rep. Bill Foster’s Investor Choice Act would protect Americans who have money invested for tuition and retirement
Washington, DC—The following is a statement from American Association for Justice CEO Linda Lipsen on the Investor Choice Act, introduced by Senator Jeff Merkley (D-OR) and Representative Bill Foster (D-IL), which would end the use of forced arbitration against investors and shareholders of public corporations:
“When financial brokers or advisors violate securities laws, they use fine print to force defrauded investors into a system of forced arbitration where investor rights are limited. Forced arbitration effectively gives a green light to those who defraud investors because it removes the deterrent effect that comes with public accountability, meaning the kind of financial fraud we’ve become all too familiar with continues without end.
“This legislation would provide a crucial protection to all those hardworking families, saving for retirement or investing in their children's education and future. We commend Senator Merkley, Congressman Foster and the other leaders in Congress who are standing by families who only ask for a fair shot at justice if they are wronged.”
