Rakoff To Ban Arbitration For Sterling Sex Bias Class

Law360, New York (July 29, 2010, 11:40 AM EDT) -- The federal judge overseeing a 20,000-strong sex bias class action against Sterling Jewelers Inc. has indicated that if his jurisdiction is restored in the wake of an appeal, he would reconsider an earlier order and vacate an arbitrator's ruling permitting class arbitration in the case.

In light of a recent U.S. Supreme Court decision, the arbitrator's construction of the arbitration agreements as permitting class arbitration exceeded her powers and cannot be upheld, Judge Jed S. Rakoff ruled in the U.S. District Court for the Southern District...
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