Laver v. Credit Suisse Securities (USA), LLC, No. 18-16328 (9th Cir. 2020)
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The Ninth Circuit affirmed the district court's dismissal of a putative class action against CSSU in favor of arbitration. After plaintiff filed suit alleging that he was owed deferred compensation, CSSU moved to dismiss based on an arbitration clause and general class waiver set forth in an Employee Dispute Resolution Program.
The panel rejected plaintiff's argument that FINRA Rule 13204(a)(4) invalidates the Program's class waiver. Because the class waiver survives, the panel held that plaintiff relinquished his right to bring class claims in any forum, and because he is left with only individual claims, Rule 13204(a)(4)'s prohibition on enforcing arbitration agreements directed at putative or certified class claims has no application here. Therefore, the panel held that the district court correctly ordered the parties to arbitrate plaintiff's remaining individual claims, and aligned itself with the Second Circuit's decision in Cohen v. UBS Fin. Servs., Inc., 799 F.3d 174 (2d Cir. 2015).
Court Description: Arbitration. The panel affirmed the district court’s dismissal of a putative class action suit against Credit Suisse Securities, USA in favor of arbitration. Plaintiff worked as a financial advisor at Credit Suisse Securities, USA (“CSSU”), and brought this putative class action alleging he was owed deferred compensation. CSSU moved to dismiss based on an arbitration clause and general class waiver set forth in an Employee Dispute Resolution Program. The Financial Industry Regulatory Authority (“FINRA”) is a securities industry self-regulatory organization that imposes rules regulating the conduct of its broker-dealer members. CSSU is a FINRA member. Plaintiff argued that FINRA Rule 13204(a)(4) barred CSSU from compelling arbitration of his claims. The panel rejected plaintiff’s contention that Rule 13204 invalidated the Employee Dispute Resolution Program’s class waiver. Because the class waiver survived, the panel held that plaintiff relinquished his right to bring class claims in any forum. Because plaintiff was left with only individual claims, Rule 13204(a)(4)’s prohibition on enforcing arbitration agreements directed at putative or certified claims had no application here. In accord with the Second Circuit’s decision in Cohen v. UBS Fin. Servs., Inc., 799 F.3d 174 (2d Cir. 2015), the panel held that the district court correctly LAVER V. CREDIT SUISSE SECURITIES (USA) 3 ordered the parties to arbitrate plaintiff’s remaining individual claims.
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