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This can be as devastating class action law suit. If enough people start exercising their right to arbitration it can get VERY costly for Facebook. I can’t fin
by anang 6y ago
This can be as devastating class action law suit. If enough people start exercising their right to arbitration it can get VERY costly for Facebook.
I can’t find the story now, but there was a case in I think California of a company suing to get out of an arbitration clause, wanting instead to move to a class action lawsuit. Thousands of arbitrations became time consuming and costly. So I think there is still big potential for a coordinated effort to make this difficult for Facebook, even if a class action suite were off the table.
- CaptainZapp 6y agoUber. Something like 62000 drivers at last count invoked the arbitration clause, which got mighty costly. Can't say I feel sorry for them.
- DoofusOfDeath 6y agoU.S. legal question: Is there anything unlawful about offering to cover legal fees for everyone wanting to pursue good-faith legal recourse (including arbitration) against a particular company? For example, suppose I'm a mega-billionaire who simply finds Facebook's conduct abhorrent. So I offer to pay for the Binding Arbitration fees of every Facebook user who has a plausible claim against Facebook. And would the legality of that change if I was majority stakeholder in one of Facebook's competitors?
- gruez 6y agoprobably violates: https://en.wikipedia.org/wiki/Champerty_and_maintenance https://en.wikipedia.org/wiki/Champerty_and_maintenance, although I'm not sure whether it's applicable for the US.
- justinclift 6y agoInteresting. That page does have a "US" section though, which makes it seem possible in much of the country: https://en.wikipedia.org/wiki/Champerty_and_maintenance#United_States https://en.wikipedia.org/wiki/Champerty_and_maintenance#Unit...
- siberianbear 6y agoI'm not a lawyer. But I think this is pretty much what happened when Peter Thiel funded lawsuits against Gawker until one of them bankrupted them. https://www.thewrap.com/silicon-valley-billionaire-peter-thiel-named-as-secret-funder-of-hulk-hogan-lawsuit-against-gawker/ https://www.thewrap.com/silicon-valley-billionaire-peter-thi...
- plasma 6y agoYou're thinking of the DoorDash arbitration case, there's a great legal review by a lawyer at https://www.youtube.com/watch?v=juyzTOjXxgw https://www.youtube.com/watch?v=juyzTOjXxgw (IANAL) The summary is DoorDash agreements with its dashers demanded arbitration, which costs both parties an amount, but thousands of dashers invoked the clause which cost DoorDash millions in fees. DoorDash then tried to get out of it and opt-out or arbitration, but they couldn't.