Class-Action Suits Curbed as Court Backs Travelers Unit

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The U.S. Supreme Court put new constraints on class-action lawsuits, siding with a Travelers Cos. unit and undercutting what companies say is a favorite tactic used by trial lawyers to steer cases to friendly courts.

Under the disputed approach, lawyers agree not to seek more than $5 million -- the threshold that sends class-action suits to federal court under a 2005 U.S. law.