Ted Frank has a wonderful post on Carlyle Group's decision to drop its effort to require mandatory arbitration of corporate and securities laws claims by shareholders (actually, limited partners). Money quote:
Shareholders who think class actions are good things can invest in one of the thousands of other securities out there; those who think class actions divert shareholder resources to attorneys now have a new, improved, investment option. Let the market decide which type of stock should trade at a premium and which at a discount.
Go read the whole thing.
Update: I also am in completely agreement with Gordon Smith's take on the issue. Money quote:
This is a nice example of how the right rules could encourage companies to become laboratories of corporate governance.