Social Media – Reforming Corporate Behavior?
Andrew Pincus discusses the advantages of arbitration in a recent New York Times article, saying, in part, that the Supreme Court’s decision in AT&T Mobility v. Concepcion, handed down a year ago, was greeted as a ‘game-changer’ that could “end class-action litigation in America as we know it.”
In addition, Pincus stated that “plaintiffs’ lawyers like to argue that class actions are essential to provide compensation and deter wrongful conduct. But the vast majority of class actions produce little compensation, and most corporate officials view them as a ‘cost of doing business,’ not a badge of dishonor. Deterrence comes from government enforcement and, increasingly, from the use of social media in which the threat of brand damage is used as a ‘stick’ to reform corporate behavior.
What do you think?