Lawsuits Claim Plaintiffs Firms Are ‘Weaponizing’ Mass Arbitration

Companies are pushing back against what they claim to be a “weaponization” of their arbitration agreements by plaintiffs firms. Three lawsuits targeting plaintiffs firms who file mass arbitrations highlight steep ADR bills from thousands of individual claims.

These million-dollar invoices are intentional, according to the Feb. 24 complaint from Womble Bond Dickinson and Baker & Hostetler on behalf of children’s clothing brand Janie & Jack. “The goal of these filings is not to reduce costs; it is to increase them,” according to the lawsuit in the U.S. District Court for the Northern District of California.

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