Does an ambiguous contract provide a contractual basis to compel class arbitration under the Federal Arbitration Act (FAA)? In Lamps Plus v. Varela, the United States Supreme Court answered “no,” continuing a series of victories upholding class action waivers. 139 S. Ct. 1407, 1416 (2019).

The underlying dispute in Lamps Plus is straightforward. In 2016, approximately 1,300 Lamps Plus employees’ tax information was compromised in a data breach from a “phishing attack.” One of those employees, Frank Varela, discovered that a fraudulent income tax return was filed in his name. He filed a putative class action against Lamps Plus in the Central District of California. Lamps Plus v. Varela, 139 S. Ct. 1407, 1412–13 (2019).

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