The Court of Appeals of Texas has held that in a shareholder agreement regarding the purchase of company stock, the federal and state Securities Acts anti-waiver provisions did not bar the enforcement of an international forum selection clause. The parties had consented to the exclusive jurisdiction of courts in Ontario, Canada to adjudicate any disputes stemming from or related to the shareholder agreement or/and the purchase, sale or holding of company common shares. Securities laws were only impacted where parties exercised their rights to voluntarily take part in a contract mandating that lawsuits be brought in courts and under another country’s laws. Also, public policy was in strong favor of enforcing forum selection clauses.
Commenting upon the ruling, Shepherd Smith Edwards and Kantas Founder and Stockbroker Fraud Attorney William Shepherd noted: “The vast majority of securities loss claims filed in the past 20 years have been decided in arbitration. With international arbitration forums becoming more prevalent as economies globalize, this change was inevitable. It is very important for investors to hire attorneys with experience in securities arbitration to seek recovery of securities losses. Over the past 20 years, our firm has represented thousands of investors nationwide – and worldwide – in securities arbitration.”
Related Web Resources:
Young v. Vault.X Holdings, Inc.
Arbitration and Mediation, FINRA
Texas Securities Fraud
Whether your case ends up in arbitration or the courts, it is important to make sure that you work with a Texas investment fraud law firm that has the experience and resources to pursue your financial recovery. We know how devastating it can be to lose money because of other parties’ negligence.