Coinbase High Court Win Hits at Arbitration-Settlement Strategy

A split US Supreme Court decision allowing Coinbase Global Inc. to pause a lawsuit while it appealed a dispute over sending claims to arbitration will affect a broad array of cases and potentially weaken plaintiffs’ leverage in settlement talks, attorneys said.

The justices’ 5-4 ruling last week came in litigation demanding that the cryptocurrency exchange platform compensate a user who said he lost $31,000 after a scammer gained remote access to his account. Resolving a circuit split, the majority found that underlying litigation can be stayed while an appeal goes forward challenging the denial of a motion to compel arbitration. ...