Exclusive Forum Clauses Offer Few Issues, Lots of Upside in Protecting Deals: Experts

June 17, 2015

Jason D’Angelo was quoted in the Bloomberg BNA: Corporate Law & Accountability Report article “Exclusive Forum Clauses Offer Few Issues, Lots of Upside in Protecting Deals.”

Jason told BBNA that when such provisions are properly drafted, they ensure that litigation is resolved before a court that is most familiar with the applicable law, “while also reducing the likelihood of companies being forced into undue settlements in order to avoid the cost of defending against the same allegations in multiple courts.”

He added that “non-litigant shareholders also have an interest in reducing frivolous lawsuits and improper litigation tactics by plaintiffs as shareholders have an interest in protecting their investment. Shareholders’ right to have their claims heard before a competent court remains intact, and shareholders are given advanced notice as to where such claims are likely to be heard. If a company selects a forum in its bylaws that a shareholder is unhappy with, the shareholder is free to sell his/her shares or otherwise make efforts to change the bylaws.”

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