Revisiting FINRA's Class Waiver Policy Post-AT&T

Law360, New York (August 31, 2011, 1:43 PM EDT) -- The U.S. Supreme Court, in AT&T Mobility LLC v. Concepcion,[1] recently opened the door to widespread use of arbitration agreements that require consumers to waive their right to participate in class actions. In finding such an agreement enforceable, the AT&T court held that a California rule rendering unenforceable arbitration agreements containing class action waivers was inconsistent with, and therefore preempted by, the Federal Arbitration Act.

Like the preempted California rule, the Financial Industry Regulatory Authority Code of Arbitration Procedure for Customer Disputes Rule 12204 prohibits FINRA...
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