Chicago Partner Rusty Perdew, Co-Chair of Locke Lord’s Consumer Products, Retail & Franchise Industry Group and a member of the Firm’s Class Actions Practice Group, referred to the Supreme Court’s decision in Lamps Plus v. Varela as “another arrow in the quiver” of companies seeking to compel individual arbitration after the court decided in favor of Lamps Plus in its effort to stop employees from forcing a class action.
He went on to note the ruling is unlikely to end litigation concerning the power of employees to initiate a class arbitration, as the Supreme Court did not specify what language an arbitration agreement must have to permit a class action. Perdew predicted the Supreme Court will likely need to hear another case on the subject to resolve disagreements among lower courts in the future.
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