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McGuireWoods LLP | USA | 26 May 2011

Arbitration clauses in consumer contracts may bar class actions

On April 30, 2011, the U.S Supreme Court ruled in a 5-4 opinion in AT& T Mobility LLC v. Concepcion that California state law deeming class action waivers in arbitration agreements unenforceable in certain circumstances is 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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