A class action waiver provision in a contract between American Express and merchants is unenforceable under the Federal Arbitration Act, the 2nd Circuit has ruled for the first time. The circuit, reinstating a lawsuit brought by the merchants under the Sherman Act, said it was unwilling to grant "de facto immunity from antitrust liability by removing the plaintiffs' only reasonably feasible means of recovery."
2nd Circuit Rejects Class Action Waiver in American Express Merchant Pact
New York Law Journal
February 6, 2009
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