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Court Rules Consumers' Fraud and Racketeering Claims May Go Forward Against National Arbitration Forum and Its Owners
February 22, 2010
U.S. District Court Judge Paul A. Magnuson denied in large part motions to dismiss a class action lawsuit filed by consumers against the National Arbitration Forum, Inc. ("NAF"), and several entities that own NAF, alleging fraud and racketeering activity. The plaintiffs, consumers whose debt disputes were submitted to binding arbitration before the NAF, allege NAF conducted sham arbitrations that resulted in rulings in favor of creditors. Read the Court's order.