Arbitration plays a vital role in offering consumers and employees an efficient forum for resolving disputes, especially as courts face growing constraints. However, the rise of abusive mass arbitrations aimed at extracting settlements—regardless of whether the claims asserted have any merit—distorts this system, harming businesses, consumers, and employees alike.
An update to 2023’s Mass Arbitration Shakedown research, Private Power, Public Harm highlights a comprehensive series of examples of abusive claimants’ lawyer behavior in mass arbitrations. From questionable client solicitation practices resulting in serious claimant confusion, to barebones vetting of claims, to little-to-no communication from lawyers to claimants, this research paints a picture of a mass arbitration cottage industry intent on rapidly building up claimant lists to leverage companies into quick settlement, regardless of the merits of the underlying claims.
The authors explore the many facets of this problem and recommend solutions for the various actors and institutions that have the power to fix it, including courts, legislators, regulators, state attorneys general, state bar associations, companies, and the arbitration providers themselves.
