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Multiple Exposure Of Gavel And Justice Scale And Urban SceneOn March 18, 2020, the Delaware Supreme Court decided Salzberg v. Sciabacucchi, 2020 WL 1280785 (Del. March 18, 2020), rejecting a challenge to the validity of federal-forum provisions (FFPs) adopted in the corporate charters of three Delaware companies before their initial public offerings (IPOs). The challenged FFPs designated the federal courts as the exclusive venue for shareholder suits under the federal Securities Act of 1933. While concluding that FFPs can survive a facial challenge, the decision raises several new questions, including how the opinion will apply to forum selection clauses adopted in different contexts, such as mandatory-arbitration clauses. After briefly summarizing the Salzberg decision, we assess its impact on these and other questions.

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