By: John F. Fullerton III and Matthew J. Tronzano
Mandatory class action waivers may have received an important seal of approval as the result of a recent decision arising in the financial services industry. On February 21, 2013, a Financial Industry Regulatory Authority (FINRA) disciplinary hearing panel permitted Charles Schwab & Company, Inc. to maintain its predispute arbitration provision in its customer agreement that includes a class action waiver (pdf). With this development, now may be the time for firms to evaluate and consider class action waivers in their arbitration ...
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