Supreme Court Rules Corporations can Prohibit Class Action Lawsuits04/28/2011 | San Francisco, California, United States | Keller Grover LLP (Press Release) (Blog) | Carey Been, Class Action LawyerIn a 5-4 decision written by Justice Scalia, the Supreme Court ruled on Wednesday that corporations can use arbitration clauses to prohibit consumers from banding their claims together in class action lawsuits. In a scathing dissent, Justice Breyer rightly noted that the practical effect of the decision will be to allow companies to insulate themselves from liability for their own frauds. The decision is likely to have widespread ramifications for all U.S. consumers.
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