Supreme Court Puts Limits On Class Actions The court handed corporations a major victory. By a 5-4 vote, the justices ruled Wednesday that companies can enforce contracts that bar consumers and employees from banding together to bring class action suits.
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Supreme Court Imposes Limits On Class Actions

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Supreme Court Imposes Limits On Class Actions

Law

Supreme Court Imposes Limits On Class Actions

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RENEE MONTAGNE, Host:

NPR's business news starts with a ruling against class action suits.

(SOUNDBITE OF MUSIC)

MONTAGNE: NPR legal affairs correspondent Nina Totenberg reports.

NINA TOTENBERG: Here's Deepak Gupta of Public Citizen, who argued the case for the consumers.

MONTAGNE: Alan Kaplinsky, who filed a brief for the American Bankers Association, agrees that corporations will now feel free to increase their use of arbitration contracts. But, he contends, that will be good for consumers.

MONTAGNE: Look at the data. You know, AAA has been conducting consumer arbitrations now for a decade and there is empirical data showing that consumers do very well in arbitration.

TOTENBERG: Nina Totenberg, NPR News, Washington.

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