Schwab Wins One For The Broker, Threatening Class Actions

Law360, New York (February 22, 2013, 6:30 PM EST) -- Class actions against brokerage firms may soon become a relic of the past after a Financial Industry Regulatory Authority panel on Thursday gave Charles Schwab & Co. Inc. the green light to use a controversial forced-arbitration agreement, striking a blow to small investors.

In a landmark ruling, the panel approved Schwab's use of a class-action waiver that forces investors to arbitrate their claims on a case-by-case basis. The firm instituted the waiver in the wake of the U.S. Supreme Court's 2011 decision in AT&T Mobility v....
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