Lawmaker opposes restraints on suits

Rep. Barney Frank (D-Mass.), chairman of a congressional committee that oversees the Securities and Exchange Commission, said he would oppose a move to make it harder for shareholders to sue companies.

“I have heard with great concern that the commission and its staff may begin permitting public companies to impose mandatory arbitration requirements on their shareholders,” Frank told SEC Chairman Christopher Cox in a letter.

The SEC is reviewing whether shareholders should be allowed to vote on restrictions on company lawsuits. Business groups want to be able to settle investor grievances through arbitration.