In a significant move that is set to have far-reaching implications for the financial industry, the US Securities and Exchange Commission (SEC) has issued a ruling that could shield initial public offering (IPO) issuers from costly class-action lawsuits. The SEC's decision is seen as a major victory for companies that go public, as it will give them greater protection from shareholder lawsuits that often accompany IPOs. The ruling is likely to make it more attractive for companies to list on US stock exchanges, as it reduces the risk of costly litigation. However, critics argue that the decision may also limit the ability of shareholders to hold companies accountable for potential wrongdoing.
US SEC hands victory to IPO issuers who want to avoid class-action lawsuits Reuters
