On June 10, 2017, the Consumer Financial Protection Bureau (CFPB) published a final rule attacking the use of class action waivers in arbitration clauses in certain consumer contracts. The new rule prohibits covered providers of consumer financial products or services, such as credit cards and bank accounts, from using arbitration clauses in consumer contracts to require consumers to resolve their disputes individually, rather than on a classwide basis. Specifically, ... Keep Reading »
Archives for July 2017
Class Action and Regulatory Settlements Reflect the Rising Cost of Data Breaches
As the number of data breaches continues to increase, so too do the costs. After a breach occurs, companies typically expend significant sums conducting investigations, notifying customers and regulators, and engaging in public relations. They incur additional expenses enhancing security and providing identity protection services to victims. And then, of course, there are legal fees, involving both litigation and compliance, which can add up to more than half the total ... Keep Reading »