Companies Can Block Customers’ Class-Action Lawsuits
April 27, 2011
Wednesday marked an important day of victory for businesses. The Supreme Court ruled that corporations can use arbitration clauses to force customers to arbitrate their claims individually. The ruling effectively prevents dissatisfied consumers or employees from joining together in class-action lawsuits.
One law professor notes that this is the biggest ruling ever on class actions which “gives companies a green light to exempt themselves from all class actions from their customers or from their employees.”