Coinbase - The Class Action Blog by Carr Maloney PC

United States Supreme Court Grants Certiorari to Decide Coinbase’s Arbitration Dispute

On November 3, 2023, the United States Supreme Court granted certiorari and agreed to hear the Ninth Circuit’s decision in Coinbase Inc. v. Suski. The Supreme Court is expected to review the Ninth Circuit’s decision ruling that Coinbase’s dispute with its cryptocurrency users is to be resolved by the Court and not via arbitration.

Coinbase’s User Agreement provides that any dispute between one of the largest cryptocurrency exchange platforms and its users will be resolved through arbitration and not through the courts. A delegation clause in the User Agreement also stated that all issues surrounding the enforceability […]

By Matthew D. Berkowitz and Nima Youchidje|2023-11-07T11:42:37-05:00November 7th, 2023|Practice Areas: Class Action|Topics: Class Action, Coinbase, cryptocurrency, Suski|

Read the Full Article

The Supreme Court Upholds the Automatic Stay During an Arbitration Appeal

On June 23, 2023, the Supreme Court held, in Coinbase, Inc. v. Bielski, that the Federal Arbitration Act (FAA) imposes an “automatic stay” on litigation while an appellate court decides whether the parties must resolve their dispute through arbitration. The decision ends a federal circuit split in which some courts have required class action defendants to bear the cost of seeking to enforce an arbitration clause while litigating the underlying claims in federal court. This ruling eliminates such unnecessary expense because it requires federal courts to pause litigation and allow the appellate court to determine whether […]

By Stuart Davis|2023-06-27T22:56:36-04:00June 27th, 2023|Practice Areas: Class Action|Topics: Coinbase, Federal Arbitration Act (FAA)|

Read the Full Article

The Supreme Court Contemplates Ending the Automatic Stay During an Arbitration Appeal

In December, this blog noted that the Supreme Court, in Coinbase, Inc. v. Bielski, would consider whether federal law requires courts to automatically stay litigation during an arbitration appeal. The Supreme Court heard oral argument on the issue yesterday and several justices expressed a willingness to potentially end the automatic stay during an arbitration appeal. Such a decision would likely increase the cost of defending class-action lawsuits in most jurisdictions.

Arbitration generally provides a less costly and more efficient procedure for resolving disputes than litigation. Arbitration clauses, a staple of business contracts, compel would-be litigants to resolve […]

By Stuart Davis|2023-03-24T16:36:53-04:00March 24th, 2023|Practice Areas: Class Action|Topics: Arbitration, Coinbase, Electronic Funds Transfer Act|

Read the Full Article

Supreme Court Considers Whether to Automatically Stay Litigation During an Arbitration Appeal

In 2021, two plaintiffs filed separate class-action lawsuits against Coinbase, one of the largest cryptocurrency exchanges in the U.S. Coinbase moved to compel arbitration in each case because both plaintiffs signed Coinbase’s User Agreement directing any dispute to arbitration. The United States District Court for Northern California denied arbitration in both cases. Coinbase appealed the denial of arbitration and moved to stay the underlying class actions. The District Court again denied Coinbase’s motion and allowed both the arbitration appeal and the class action litigation to proceed concurrently.

The Ninth Circuit affirmed the District Court in both cases. […]

By Brian O’Shea and Stuart Davis|2023-01-14T08:35:50-05:00December 21st, 2022|Practice Areas: Class Action|Topics: Arbitration, Coinbase, Electronic Funds Transfer Act|

Read the Full Article