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Reuters is reporting that SEC Commissioner Michael Piwowar urged IPO companies to request relief from the SEC to include mandatory arbitration provisions for shareholder disputes. Commissioner Piwowar apparently made the comment in as yet unpublished remarks during an appearance at the Heritage Foundation.

In 2012, Carlyle reportedly dropped a mandatory arbitration provision from its IPO documents after pressure from the SEC.

Mandatory arbitration is seen as a means to stop frivolous shareholder class action law suits.