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Litigation & Arbitration

Dec. 13, 2024

Mass arbitration rules: Who decides when claims consolidate?

The rise of mass arbitrations has prompted forums like AAA and JAMS to establish specialized rules and gatekeepers to determine claim consolidation, while others, like FINRA, leave the process less defined, raising procedural fairness concerns.

Bentley P. Stansbury III

Partner Stradley Ronon Stevens & Young, LLP

400 Oceangate
Long Beach , CA 90802

Phone: (562) 436-2000

Email: bstansbury@stradley.com

University of California Berkeley; Berkeley CA

Shutterstock

In recent years, there has been a rise in cases where multiple claimants seek to have their respective claims heard in one consolidated arbitration. These claims are often filed by the same lawyer or law firm representing many different claimants. Some forums, like JAMS and the American Arbitration Association (AAA), have responded by implementing special rules for "mass arbitrations." Others, like the Financial Industry Regulatory Authority (FINRA), have chosen not to adopt ...

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