Modifications to the AAA Supplementary Rules and Fee Schedules Published and Effective Immediately

Skadden, Arps, Slate, Meagher & Flom LLP

Michael W. McTigue Jr. Meredith C. Slawe

On January 15, 2024, the American Arbitration Association (AAA) announced changes to the AAA-ICDR Mass Arbitration Supplementary Rules and Fee Schedules to take effect immediately. The AAA stated in a press release that these modifications result from “listen[ing] to the needs of individuals and businesses involved in mass arbitrations” and are designed to “save time, reduce costs, and foster constructive dialogue.”

Mass arbitration has posed significant challenges for businesses. The plaintiffs’ bar continues to weaponize aggregate AAA and JAMS arbitration fees to extract large, confidential settlements untethered to the merits of the underlying claims. How these changes might impact the mass arbitration landscape in connection with AAA proceedings remains to be seen.

For more information about these developments, please reach out to your Skadden contact or the attorneys listed above and consider attending our mass arbitration webinar on January 18, 2024.

This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.

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