Mass arbitration continues to be a significant and evolving issue in the legal landscape, particularly for consumer, healthcare, and employment disputes. The American Arbitration Association (AAA) recently released data from 2024 that provides valuable insights into the trends and outcomes of mass arbitrations.
Key Statistics from 2024
In 2024, there were 92 mass arbitrations filed with the AAA. Of those, 82 were consumer mass arbitrations consisting of 247,327 individual filings, or an average of just over 3,000 claims per mass arbitration. Only a fraction of those consumer claims, less than 10%, proceeded to merits arbitration.
For cases that were closed in 2024, only 1% of those cases resulted in an award. The outcomes of the cases awarded varied, with a significant number of cases being settled or dismissed:
Settled: 4,182 cases
Dismissed: 2,105 cases
Withdrawn: 699 cases
Awarded: 73 cases
Administrative: 63 cases
Consolidated: 1 case
Monetary Awards
The monetary awards in consumer mass arbitration claims also provide insight into the financial implications of these disputes, reinforcing that the filing fees associated with the practice of filing hundreds of cases at a time by the plaintiffs’ bar is the real leverage:
Average Award: $10,131
Largest Award: $33,742
Median Award: $7,537
Industries
Certain industries were more frequently involved in consumer mass arbitrations, with gaming/entertainment, healthcare, technology, and financial services leading the way:
Gaming/Entertainment: 101,549 cases
Healthcare: 32,318 cases
Technology: 31,932 cases
Financial Services: 18,817 cases
Telecommunications: 37,975 cases
Transportation: 204 cases
Restaurant/Food Service: 568 cases
Our Take
The data from 2024 reflects that the overwhelming majority of mass arbitrations are resolved without proceeding to merits arbitration or an award. This underscores the importance of early and proactive management of mass arbitration demands, both through appropriate arbitration terms that minimize the leverage of mass arbitration claims and knowing how to effectively manage mass arbitrations after the arbitration cases are filed. Early mediation and effective case management utilizing the services of the AAA appointed process arbitrator are tools which minimize risks and drive efficient results.
