US Arbitration Organization Must Contend With Antitrust Suit

The American Arbitration Association lost its bid to knock out a proposed class action alleging it holds an illegal monopoly in the consumer arbitration market.

The US District Court for the District of Arizona denied the AAA’s motion to dismiss the suit, advancing federal and state antitrust claims by a proposed class of US residents with a contract providing the AAA as the only available forum for legal relief.

Large companies—such as Live Nation Entertainment Inc. and T-Mobile US Inc.—often rely on arbitration to resolve disputes outside of court, viewing private arbitrators as a cheaper alternative to litigation.

Arizona resident ...