Top Five Tips For Minimizing The Risk Of Class Action Litigation

Beyond the usual substantive advice—maintaining effective compliance and document management systems, for example—our class action defense team suggests that companies implement the following relatively straightforward procedural tips to avoid class actions.

1. Include an arbitration clause with a class action waiver in consumer contracts, website terms and conditions, and product literature.  Although the Supreme Court has repeatedly upheld their enforceability—e.g., AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (2011); American Express Co. v. Italian Colors Restaurant, 133 S. Ct. 2304 (2013)—some courts continue to apply state law doctrines that disfavor arbitration.  Sheppard Mullin's class action defense team can help draft the clause to maximize the chances it will be enforced.