SpaceX’s Novel Shareholder Dispute-Resolution Bylaws Could Have Far-Reaching Implications

Subscribe and Listen

The SpaceX IPO generated enormous attention for obvious reasons. It was the largest IPO in history, and the company’s stock price initially surged after trading began. But an important legal development associated with the IPO has received considerably less attention: SpaceX adopted an unusually comprehensive shareholder dispute-resolution regime (the “Regime”) in its bylaws.

In our Consumer Finance Monitor podcast released today, our host, Alan Kaplinsky (founder, former leader for 25 years, and now Senior Counsel of our Consumer Financial Services Group) spoke with Professor Mohsen Manesh of the University of Oregon School of Law about the Regime and the significant legal questions it raised.  Manesh is an authority on corporate, contract, and LLC law and has written extensively about arbitration provisions in corporate charters and bylaws. This was his second appearance on our podcast to discuss shareholder arbitration and the SEC’s changing position on the subject.

Key Topics Discussed:

• Why the SpaceX provisions are notable
• How the SpaceX dispute-resolution regime works
• The distinction under the federal securities laws
• The importance of the class action waiver
• The distinction between the two waivers
• Shareholder consent
• Broader competition between Delaware and Texas for corporate charters
• Professor Manesh’s theory for why the FAA may not preempt Delaware’s restrictions

As Professor Manesh and I discussed, SpaceX’s Regime is about much more than arbitration. It presents a novel test of the intersection between corporate law, federal arbitration policy, federal securities law, forum selection, and class action practice. The litigation that eventually tests these provisions could shape the development of shareholder dispute resolution for years to come.

Consumer Finance Monitor is hosted by Alan Kaplinsky, Senior Counsel at Ballard Spahr, and the founder and former chair of the firm's Consumer Financial Services Group. We encourage listeners to subscribe to the podcast on their preferred platform for weekly insights into developments in the consumer finance industry.

A transcript of the recording will be available soon.

Copyright © 2026 by Ballard Spahr LLP.
www.ballardspahr.com
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.