U.S. Supreme Court Rules Class Arbitration Must Be Explicitly Authorized Featured

  24 April 2019

The U.S. Supreme Court has ruled, in a 5-4 decision (with the conservative justices in the majority), that class arbitration must be explicitly authorized.

The case involves Frank Varela, who filed a class action on behalf of current and former employees of Lamps Plus, Inc,. accusing the company of negligence, breach of contract and invasion of privacy after a hacker obtained his personal information from the company. The company’s arbitration agreement did not authorize class arbitration. The Supreme Court agreed with the company, which argued that arbitration must be conducted on an individual basis only. Read more here.