Institutional Investors Overwhelmingly Reject Forced Arbitration in Intuit Shareholder Vote
Statement of Remington A. Gregg, Counsel for Civil Justice and Consumer Rights, Public Citizen
Note: Today, the financial software firm Intuit announced that shareholders voted down a proposal that would have forced shareholders into binding arbitration instead of allowing them their day in court if they sue the company, its officers or directors. Only 2.4% of shareholders supported the proposal. Public Citizen and coalition partners have urged shareholders to vote against it. Over the past decade, forced arbitration clauses have become almost impossible to avoid in consumer and employment contracts.
Consumers, workers and small businesses understand that forced arbitration clauses block everyday people from holding corporations accountable for wrongdoing. This vote proves that large institutional investors – including Intuit’s largest shareholders, Vanguard and State Street – are no fans of forced arbitration either. Intuit’s shareholders sent a strong and resounding message against forced arbitration with this vote.