United States: Litigation, Mediation & Arbitration

A California federal court ruled that plaintiffs cannot avoid arbitration simply by labeling their claims as "sexual harassment." The decision requires plaintiffs to plausibly allege conduct that actually constitutes sexual harassment under governing law before the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies. This ruling establishes important limits on attempts to circumvent arbitration agreements through strategic claim labeling.

A federal magistrate judge blocked an employer from distributing a dispute resolution agreement with a class action waiver to settlement class members between preliminary and final approval stages. The court found that despite the agreement's non-coercive language, the timing created unacceptable risks of confusion that could interfere with class members' settlement rights.

A federal judge dismissed a securities fraud class action against former executives of a business communications company, finding that plaintiffs failed to adequately plead actionable misstatements or establish scienter. The court analyzed allegations concerning revenue projections, financial disclosures, and internal controls during the company's transition from hardware to subscription-based software, ultimately determining that forward-looking statements were protected by safe harbor provisions and that