The case is Stephens v. Am. Arb. Ass’n Inc., No. CV-25-01650, 2026 WL 878981 (D. Ariz. Mar. 31, 2026). Here’s a paragraph from the opinion on the antitrust claim:
With regard to the first element of Plaintiffs’ claim under § 2 of the Sherman Act— monopoly power in the relevant market—the AAA states in its Motion that it “disputes Plaintiffs’ position that it somehow possesses monopoly power in a purported consumer arbitration market (to the extent that such a market even exists), given the wide variety of formal and informal dispute resolution procedures available to consumers.” (MTD at 4.) But the AAA goes no further in its briefing to challenge the adequacy of Plaintiffs’ allegations regarding the AAA’s monopoly power in the consumer arbitration market—the question before the Court at this stage. To meet this element, Plaintiffs allege in detail that, from 2010 to 2024, 94% of consumer arbitrations were filed with the AAA, 5% were filed with Judicial Arbitration and Mediation Services, Inc. (JAMS), and the other 1% was filed with other arbitration services. (FAC ¶¶ 72–84.) Plaintiffs have thus adequately alleged the AAA’s monopoly power in the consumer arbitration market. See, e.g., United States v. Grinnell Corp., 384 U.S. 563, 571 (1966) (concluding 87% of a relevant business market “leaves no doubt” that a defendant has monopoly power).
And here’s some of what the court said about the plaintiffs’ unfairness claim:
The AAA contends Plaintiffs’ claims fail because the allegations in the FAC do not lead to the plausible inference that the AAA’s practices are unfair. (E.g., MTD at 10.) But as the Court discussed supra, Plaintiffs have sufficiently alleged that, among other things, the AAA employs biased arbitrators and, for example, that consumers obtain favorable results in only 27% of AAA arbitrations, as compared to the 40% success rate in JAMS arbitrations. (FAC ¶¶ 187–88.) These and the related allegations are sufficient to raise the plausible inference of unfairness, such that the AAA’s representations had the capacity to deceive the public under the statutes.
I wonder what discovery will turn up.
