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Pillsbury | USA | 28 Apr 2011

US Supreme Court gives green light to class action waivers in consumer contracts

On April 27, 2011, the U.S. Supreme Court, ruling in a five-to-four decision, in AT&T Mobility LLC v. Concepcion et ux., held that California's Discover Bank rulea rule that largely invalidated class action waivers in arbitration provisions in consumer contracts in California and other states following similar rulesis preempted by the Federal Arbitration Act because it "stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.

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