US Supreme Court Backs Coinbase in Key Ruling, Bolsters Companies' Right to Arbitrate Disputes

The U.S. Supreme Court has ruled in favor of a Coinbase Global, Inc COIN subsidiary, reaffirming the power of companies to direct customer and employee conflicts towards arbitration.

With a 5-4 vote, the justices decreed that any lawsuits filed in federal court need to be paused lest a defendant appeals for the case to arbitration, Bloomberg reports.

Business circles supported Coinbase during this case, arguing that continuing with litigation would lead to needless expenses. Conversely, consumer advocates argued that judges should be able to choose which claims could proceed during an appeal, as per the norm in other legal areas.

Previously the U.S. Supreme Court justices appeared divided over Coinbase's bid to halt customer lawsuits the company says belong in private arbitration.

Price Action: COIN shares traded lower by 0.85% at $57.01 on the last check Friday.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.