News & Analysis as of

Mandatory Arbitration

Morrison & Foerster LLP

Sec Lit IQ: MoFo’s Quarterly Federal Securities Litigation and Delaware Corporate Litigation Newsletter (Q3 2025)

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Companies may need to include interim financial data in their SEC filings following a recent Ninth Circuit ruling. In Sodha v. Golubowski, No. 24-1036, -- F.4th --, 2025 WL 2487954 (9th Cir. Aug. 29, 2025), the Ninth Circuit...more

Ballard Spahr LLP

SEC Reverses Stance, Allows Companies to Mandate Arbitration for Investor Claims

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Last week, the Securities and Exchange Commission (SEC) issued a new policy statement allowing companies to include in their organizational documents arbitration provisions that would require investor claims arising under the...more

Goodwin

SEC Announces Open Meeting to Consider Policy on Mandatory Arbitration Provisions

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On September 10, 2025, the SEC announced that an open meeting will be held on September 17, 2025 and the agenda items include: There has been a long-standing debate over whether public companies should be permitted to require...more

Troutman Pepper Locke

SEC Takes Official Position on Inclusion of Issuer-Investor Mandatory Arbitration Provisions for IPOs

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In a policy statement issued by the Securities and Exchange Commission (SEC) on September 17, 2025, the agency announced that companies seeking to go public will be permitted to include an issuer-investor mandatory...more

Troutman Pepper Locke

Leeper v. Shipt: Will California Hamper Arbitration in PAGA Employment Lawsuits?

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In Leeper v. Shipt, the California Supreme Court will revisit the ongoing question of whether, and to what extent, employees can pursue litigation in court for violation of the California Private Attorneys General Act (PAGA),...more

Morrison & Foerster LLP

U.S. SEC Reverses Prohibition on Mandatory Arbitration Provisions

On September 17, 2025, the U.S. Securities and Exchange Commission (SEC or the Commission) voted to approve the issuance of a Policy Statement (the Policy Statement) providing guidance on the Commission’s views on the use of...more

Troutman Pepper Locke

Ninth Circuit Mandates Arbitration in Millionaire Match Case: Emphasizes Totality of Circumstances in Online Contract Formation

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In a recent decision by the U.S. Court of Appeals for the Ninth Circuit, the court reversed a district court’s ruling and compelled arbitration in the case of Massel v. Successfulmatch.com dba Millionaire Match. The appellate...more

JAMS

From Promise to Practice: Resolving the Mediation Paradox in Europe

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This article explores the enduring underuse of mediation in civil and commercial disputes across the European Union (EU) and U.K., a phenomenon known as the "mediation paradox." Despite decades of policy support and legal...more

Faegre Drinker Biddle & Reath LLP

The Fifth Circuit Held That Parties to an Arbitration Agreement Must Arbitrate Their Claims Even If the Forum They Selected No...

The U.S. Court of Appeals for the Fifth Circuit recently compelled two parties to arbitrate their claims despite the abolishment of the forum that they selected in their international commercial arbitration clause. The case...more

Troutman Pepper Locke

Fourth Circuit Holds SCRA Does Not Bar Mandatory Arbitration in Consumer Agreements, Forcing Portion of Class Action Into...

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On January 27, a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit issued a significant opinion holding that the Servicemembers Civil Relief Act (SCRA) does not prohibit the enforcement of arbitration...more

Fisher Phillips

California Court Expands Tools for Invalidating Arbitration Agreements: 3 Steps Employers Can Take Now

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A California appeals court recently ruled that a federal law preventing employers from requiring sexual harassment claims to be arbitrated also blocks arbitration of all other claims alleged as part of the same case. While...more

Payne & Fears

August/September Case Summaries

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Summary: The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies not just to sexual assault and sexual harassment claims, but to all claims asserted in the “case.”...more

Jackson Lewis P.C.

California Court Exempts Entire ‘Case’ from Mandatory Arbitration Under Ending Forced Arbitration Act

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As courts continue to work out the scope of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), the California Court of Appeal in two decisions held that a plaintiff cannot be compelled to...more

Husch Blackwell LLP

Not So Fast: The Supreme Court of the United States Holds District Courts Should Not Dismiss Lawsuits Pending Arbitration

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On May 16, 2024, the Supreme Court of the United States (“SCOTUS”) unanimously held that when a district court finds that when a lawsuit involves an arbitrable dispute and a party has requested a stay of the court proceeding...more

Womble Bond Dickinson

Supreme Court Clarifies Arbitration Clauses: Key Takeaways for Companies

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Recent decisions by the U.S. Supreme Court in Smith v. Spizzirri, 601 U.S. 472 (2024) and Coinbase, Inc. v. Suski, 144 S. Ct. 1186 (2024) provide important guidance for companies utilizing arbitration clauses in their...more

DarrowEverett LLP

Proactive Protections Against CIPA Mass Arbitrations? Updated Terms of Use

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Businesses operating public facing websites that employ data analytics software to track users’ website interactions must be aware of a novel use of the California Information Privacy Act (“CIPA”) that has taken the...more

Troutman Pepper Locke

Stay or Dismiss: The Supreme Court Weighs How to Address Cases Subject to Mandatory ‎Arbitration That Are Filed in District Court

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What happens when a party required by contract to arbitrate a claim tries pursuing it in court, nonetheless? Should the case be dismissed? Or must the court hold the case on its docket while the parties seek resolution...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

Stark & Stark

United States Senate Judiciary Committee Advances Protecting Older Americans Act Bill

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The United States Senate Judiciary Committee, with bipartisan support, has advanced the Protecting Older Americans Act Bill. The bill, which was introduced by Kirsten Gillibrand, D-N.Y., and Lindsey Graham, R-S.C., heads to...more

Sheppard Mullin Richter & Hampton LLP

Supreme Court Holds that District Courts Must Stay – Not Dismiss – Actions Brought by Parties Subject to Binding Arbitration...

On May 16, 2024, the United States Supreme Court unanimously held that, when enforcing an arbitration clause subject to the Federal Arbitration Act (FAA), if any party requests a stay, the district court lacks discretion to...more

Perkins Coie

Supreme Court Requires Federal District Courts To Stay Cases Pending Arbitration

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On May 16, 2024, in Smith v. Spizzirri, the Supreme Court of the United States resolved a long-standing circuit split that affects motions to compel arbitration in federal court. Specifically, the Court answered whether...more

Parker Poe Adams & Bernstein LLP

Supreme Court Says Federal Courts Cannot Dismiss Suits Sent to Arbitration

Mandatory arbitration agreements remain popular for employers concerned about the cost, delays, and unpredictability of traditional litigation. The Federal Arbitration Act (FAA) requires federal courts to defer in most...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Recent Court Rulings on FAA’s Transportation Worker Exemption May Require Employers to Update Their Arbitration Agreements

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to...more

Jackson Lewis P.C.

Resolving Circuit Split, U.S. Supreme Court Says Courts ‘Shall’ Stay Cases Sent to Arbitration

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“Shall” means “shall” in the Federal Arbitration Act (FAA), a unanimous U.S. Supreme Court held in Smith v. Spizzirri, No. 22–1218 (May 16, 2024). The Court explained the language in the FAA providing a court “shall on...more

Benesch

“Stay Awhile”: Supreme Court Tells District Courts Not to Dismiss Claims Pending Arbitration

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In Smith v. Spizzirri, the Supreme Court unanimously held that federal district courts lack the power to dismiss a case sent to arbitration. Instead, under the Federal Arbitration Act, if a party moves to compel arbitration...more

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