Mass Arbitration

The risk of mass arbitrations is steadily rising, and companies should no longer ignore the threat posed by this increasingly prevalent tactic, which can have extensive financial consequences. “Mass arbitration” refers to plaintiffs’ lawyers enrolling a substantial number of consumers, typically hundreds, thousands, or even tens of thousands or more, to file coordinated yet individual arbitration claims against the same company, all relating to the same issue. These attorneys threaten to file the arbitrations simultaneously with the goal of pressuring companies, who could face hundreds of millions of dollars in filing fees, into a quick settlement, even if the allegations are unfounded or meritless.

­­­Eimer Stahl lawyers have developed extensive experience in proactively advising corporations on ways to reduce vulnerability before they become targets of mass arbitration demands. We have helped our clients avoid tens of millions of dollars in arbitration fees by counseling them on strategic revisions to their terms of service. Eimer Stahl also understands the unique challenges of mass arbitration defense and has successfully defended companies that have been targeted by mass arbitration tactics. To date, we have responded to tens of thousands of arbitration demands, achieving successful outcomes for clients in which we have negotiated highly favorable settlements by identifying deficiencies in arbitration demands and developed winning arguments on the merits.

Companies should not be extorted into a settlement under the weight of exorbitant legal fees. At Eimer Stahl, we have drawn on our comprehensive experience in defending against mass arbitration claims to develop internal tools and technologies that enable us to defend against a large volume of arbitrations in a cost-effective manner, enabling our clients to defend themselves on the merits and protect their businesses.