Pawn America Loses Bid To Take Data Breach Claims to Arbitrator

Pawn America Minnesota LLC, Payday America Inc., and PAL Card Minnesota LLC lost their bid to force plaintiffs in a proposed data breach class action to resolve their claims before an arbitrator.

The pawnbroker and short-term loan companies waived their right to compel arbitration by pursuing litigation through a motion to dismiss and by participating in seven months of pretrial proceedings before notifying the plaintiffs and the court that they’d had elected to arbitrate their claims, Judge Patrick J. Schiltz of the US District Court for the District of Minnesota said Thursday.

The consolidated lawsuit alleges that the defendants’ negligently ...