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Withdrawn: 699 cases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.