One of the chief litigation risks facing corporations is class actions by their shareholders. Recently, the United States Supreme Court published its opinion in American Express Co. v. Italian Colors Restaurant, 133 S.Ct. 2304 (2013), and the Delaware Chancery Court issued Boilermakers Local 154 Ret. Fund v. Chevron Corp., —A.3d —, 2013 WL 3191981 (Del. Ch. June 25, 2013). These cases make it possible for Delaware corporations to require their shareholders to resolve disputes with the companies through bilateral arbitrations instead of class actions.
From Concepcion to Italian Colors: Endorsement of Waivers
Vincent and Liza Concepcion filed a class action against AT&T Mobility in the Southern District of California in 2006, alleging that AT&T had engaged in deceptive advertising by claiming that its wireless plan included free cellphones, but then charged sales tax on the "free" phones. AT&T moved to dismiss because the contract it had with the Concepcions "provided for arbitration of all disputes between the parties, but required that claims be brought in the parties' individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding." AT&T Mobility v. Concepcion, 131 S.Ct. 1740, 1744 (2011).
