George Friedman, Adjunct Professor of Law at Fordham University School of Law, has published “SCOTUS Rules in Epic Systems: What It Means for Securities Arbitration,” Securities Arbitration Commentator, Vol. 2018, No. 3. In his paper, Professor Friedman examines the potential impact the United States Supreme Court’s recent decision in Epic Systems Corp. may have on arbitration within the securities industry.
Here is the abstract:
In a 5-4 decision split along ideological lines, the Supreme Court on May 21 held in Epic Systems Corp. v. Lewis, No. 16-285, that the Federal Arbitration Act (“FAA”) permits employers to use arbitration clauses containing class action waivers, notwithstanding the National Labor Relations Act’s (“NLRA”) protections of workers’ rights to act collectively. Justice Neil Gorsuch authored the majority Opinion, joined by Justices Alito, Kennedy, and Thomas, and Chief Justice Roberts. The Court’s liberal wing dissented in a blistering Opinion authored by Justice Ginsburg, joined by Justices Breyer, Kagan, and Sotomayor. This article covers what the decision may mean for the securities industry.