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April 29, 2011

By: Stephen J. Newman, Julia B. Strickland

On April 27, 2011, the United States Supreme Court issued its long-anticipated decision in AT&T Mobility LLC v. Concepcion, No. 09-893, 2011 WL 1561596, holding that the Federal Arbitration Act prohibits states from “conditioning the enforceability of certain arbitration provisions on the availability of classwide arbitration procedures.” The case effectively prevents state courts from finding class-action waivers in arbitration agreements to be unconscionable, significantly limiting class-action exposure for companies utilizing such provisions.