Ninth Circuit Upholds FINRA Class Action Waiver Provision

Laver v. Credit Suisse Secs. (USA), LLC, 976 F.3d 841 (9^th Cir. 2020)

Christopher Laver filed a putative class action against Credit Suisse, alleging breach of contract and other state law claims.  Credit Suisse responded with a motion to dismiss in favor of arbitration premised upon FINRA's Employee Dispute Resolution Program, which among other things contains a class action wavier.  The district court granted the motion, holding that the class action waiver provision rendered Laver unable to pursue a class action in any forum and, therefore, FINRA Rule 13204(a)(4), prohibiting compelled arbitration of putative class actions, does not apply to Laver's claims.  The Ninth Circuit affirmed, aligning itself with the Second Circuit's decision in Cohen v. UBS Fin. Servs., Inc., 799 F.3d 174 (2d Cir. 2015).

Ninth Circuit Upholds FINRA Class Action Waiver Provision

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