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Financial Services| Client Successes

Bank Enforces Arbitration and Class Action Waiver

Situation

A super-regional bank faced a putative Missouri class action lawsuit challenging its “reordering” of items presented for payment daily from highest dollar to lowest dollar. We removed the action to federal court and asked for enforcement of the arbitration clause and the class action waiver in the deposit agreement. The court sent the matter to arbitration and ruled the waiver enforceable.

Result

In addition to more than $10 million at stake, our client avoided being assigned to multidistrict litigation in Florida, where many cases had been settled for up to $100 million.