Category Archives: Class Actions

Choi & Spier on the economics of class action waivers

Albert H. Choi of Michigan and Kathryn E. Spier of Harvard have written The Economics of Class Action Waivers. Here is the abstract: Many firms require consumers, employees, and suppliers to sign class action waivers as a condition of doing business with the firm, and three recent US Supreme Court cases, Concepcion, Italian Colors, and Epic […]

Update on the claims process in the Equifax data breach litigation

Yesterday, Tara Siegel Bernard of the New York Times published a story providing an update on the claims process in the Equifax data breach litigation. The deadline to file initial claims was January 22, 2020. She reports that as of December 1, 2019, “just more than 10 percent of the consumers affected had filed for […]

Seventh Circuit: Student Loan Borrowers Can Sue Servicers Under State Consumer Protection Laws

Yesterday, a unanimous panel of the U.S. Court of Appeals for the Seventh Circuit issued an opinion in Nelson v. Great Lakes Educational Loan Services, Inc. in which it concluded that the federal Higher Education Act (HEA) does not preempt state law claims against student loan servicers. The case involves a student loan borrower who brought a […]

Imre Szalai Study Finds 78 Fortune 100 Companies Use Class Action Waivers in Consumer Agreements

Imre S. Szalai of Loyola of New Orleans has written The Prevalence of Consumer Arbitration Agreements by America’s Top Companies, 52 U.C. Davis L. Rev. Online 233 (2019). Here is the abstract:  This article present the results of a study that examines the use of arbitration agreements by the top 100 Fortune Magazine-ranked largest domestic […]

Gilles & Friedman paper on Qui Tam as a model for enforcement of group rights

Myriam E. Gilles of Cardozo and Gary B. Friedman of the Friedman Law Group have written The New Qui Tam: A Model for the Enforcement of Group Rights in a Hostile Era. Here is the abstract: The present Administration has made clear it has no interest in enforcing statutes designed to protect workers, consumers, voters and […]

Industry Lawyer Concedes Arbitration Clauses Suppress Claims and Reduce Payments to Consumers

by Jeff Sovern Industry lawyer Thomas B. Hudson of Hudson Cook has authored Arbitration Agreements: Not Always Good All the Time for AutoDealer Today, in which he writes: An arbitration agreement is the dealer’s first and best line of defense against class-action lawsuits. If you think that isn’t reason enough, have a word with the many […]

Piché Paper on the Effectiveness of Class Action e-Notices

Catherine Piché of the University of Montreal has written The Coming Revolution in Class Action Notices: Reaching the Universe of Claimants Through Technologies. Here's the abstract: This paper will address whether a correlation may be drawn between the types and modalities of notices sent to class action members and the rate of compensation of these members, […]

Tinder’s Diabolical RETROACTIVE Arbitration Clause

by Jeff Sovern One of my students told me about Tinder's new retroactive arbitration clause which, of course, includes a class action waiver. As with many such contracts, consumers accept it by using the service, regardless of whether they have read it or not–and we know few consumers actually read such things.  The arbitration clause, […]

Horton Empirical Study of How Arbitrators and Judges Decide Differently on Whether to Allow Class Actions

David Horton of California, Davis has written Clause Construction: A Glimpse into Judicial and Arbitral Decision-Making, Duke Law Journal, Vol. 68, Forthcoming. Here is the abstract: For decades, the U.S. Supreme Court has insisted that forcing a plaintiff to arbitrate — rather than allowing her to litigate — does not affect the outcome of a dispute. […]

Arbitration Opt-Outs Hit a New Low: Now They Are Undeliverable

by Jeff Sovern Some arbitration clauses permit consumers to opt out of arbitration and class action waivers provided the consumer acts within a stated period. For example, Asana provides in § 13.8 of its Terms of Service for a 30-day opt-out. Those wishing to opt out are instructed to send "written notice of your decision to opt […]