11th Circuit Affirms District Court Ruling that ESOP Arbitration Clause Is Invalid

The United States Court of Appeals for the Eleventh Circuit affirmed a district court ruling that invalidated an arbitration provision in an employee stock ownership plan sponsored by A360, Inc. (the “ESOP”), holding that the clause unlawfully waived participants’ statutory rights under ERISA. This ruling affirms the earlier procedural decision that allowed the claims to proceed. For the full history of the initial district court case and the underlying arbitration dispute, see the original NCEO Legal Digest entry: Court Rules Arbitration Clause Does Not Apply in A360 ESOP Termination Lawsuit.