08/20/2026
In an insightful article published by FTAdviser, Partner Alfred L. Fatale III examines how SpaceX’s IPO has become a proving ground for corporate governance and shareholder rights following a policy shift at the SEC.
In examining the first major IPO to incorporate mandatory shareholder arbitration, Alfred highlights SpaceX’s novel combination of mandatory arbitration, exclusive forum selection, a class action waiver, and concentrated voting control, cautioning that investors who buy stock in the company should “understand precisely what they are buying and what remedies they may be signing away.”
Alfred urges investors and advisers to look beyond valuation and growth prospects and closely examine how a company resolves shareholder disputes and structures its governance before investing.
Read the full article here: https://www.labaton.com/news-insights/spacexs-ipo-asks-investors-to-surrender-more-than-they-realize