Mandatory arbitration of statutory discrimination claims has become the bete noire of federal regulators, the plaintiff’s bar, the financial press, and now a steadily increasing number of federal and state courts. Indeed, given the growth of judicial decisions opposed to arbitration of these claims, the future of mandatory arbitration of discrimination claims is in doubt.
The securities industry has undergone the most publicized change in this arena. The Securities and Exchange Commission last year approved arbitration rule changes by both the New York Stock Exchange and the National Association of Securities Dealers.
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