Law firm Keller Postman is defending itself in front of the DC District Court today for a recent litigation scheme it ran against TV streamer Tubi. If your company has a standard arbitration clause, Keller could’ve run the same scheme against you. And even if Judge Ana Reyes finds that Keller’s play was unlawful, they’ll be back in time with another—as will any number of other clever firms. The best defense is an automated arbitration clause, and we’ll tell you why.
Here was Keller’s play: They wrangled nearly 24,000 allegedly disgruntled Tubi users and had each of them file an arbitration demand against the streaming giant for advertising discrimination. That meant Tubi suddenly had to pay for 24,000 individual arbitrations—which means paying 24,000 individual arbitrators to facilitate 24,000 private trials that last an average of six months and cost an average of $100,000 total. Each arbitration also comes with a filing fee of $1,000—meaning Keller’s scheme would cost Tubi $24 million just to initiate all the proceedings.
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