American Arbitration Association Hit With Antitrust Claims (1)

The American Arbitration Association was sued in federal court with allegations the organization holds an illegal monopoly in consumer arbitrations, preventing forum choice.

Arizona resident Stephanie Stephens alleges the AAA “swallowed the United States consumer arbitration market by charging business cut-rate fees that significantly limit how much arbitrators can charge and earn handling consumer arbitrations through ultra-low hard caps on pay,” according to a proposed class action filed Thursday in the US District Court for the District of Arizona.

Arbitrations are often used by large companies such as Live Nation Entertainment Inc. and T-Mobile US Inc. to resolve disputes outside ...