In re. Johnson & Johnson (SEC ruling)

In what is sure to be an ongoing effort by some to block stockholders and other investors from seeking to hold company managements accountable through securities fraud class action, chalk up one for the little guy: . Arbitration is being used more and more often–not as the less costly, more informal alternative dispute resolution forum it was designed to be–but in a naked attempt to block any form of class or collective action (thereby effectively eliminating any private remedy).

This trend is already well under way in the employment and consumer goods and services realms, and even in some antitrust contexts. Hopefully, pro-consumer/investor groups will continue to be successful in blocking the spread of this movement in the area of private enforcement of our securities laws.