D&G Law

Carlyle Group Drops Mandatory Arbitration Effort

We reported on January 24th that Carlyle Group had attempted to include a clause in a new registration statement it filed with the SEC to mandate that any claims for fraud in connection with its sale of securities be sent to mandatory arbitration. Today, the Carlyle Group amended its registration statement to remove that requirement, apparently finding that limiting liability for its potential frauds is simply bad business.

If this country is to get out of its financial doldrums, the answer is not in limiting liability for financial fraud; it is in providing accountability for those frauds.