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Supreme Court Backs Businesses, Curbs Class Arbitration

  • Gorsuch, Kavanaugh join 5-4 ruling favoring lighting retailer
  • Decision extends line of pro-arbitration high court rulings
The U.S. Supreme Court building stands in Washington, D.C., U.S., on Friday, April 7, 2017.
Photographer: Andrew Harrer/Bloomberg
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An ideologically divided U.S. Supreme Court gave businesses more power to channel disputes into individual arbitration proceedings, siding with a lighting retailer trying to prevent its employees from pressing group claims stemming from a phishing attack.

The 5-4 ruling said courts shouldn’t allow class arbitration unless an agreement clearly authorizes that type of proceeding. It’s the latest in a line of Supreme Court decisions that have backed arbitration and helped companies avoid the prospect of costly class actions filed by workers and consumers.