CVS Arbitration Appeal Probes Scope of Sexual Harassment Opt-Out

A CVS store manager bidding to keep her lawsuit in court will urge the Third Circuit during oral argument on Wednesday to clarify what constitutes a sexual harassment dispute under a new exception to arbitration opt-outs.

A ruling by the Philadelphia-based appeals court in Michele Cornelius’s case will play a role in determining whether the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act has the effect Congress intended, attorneys unaffiliated with the case say. Others say companies will face additional litigation costs, risk out-sized damages awards, and may be more inclined to settle if allegations like Cornelius’, which ...