The U.S. Supreme Court ruled against Coinbase Global (NASDAQ:COIN) in a case where the cryptocurrency exchange contended that disputes about a sweepstakes it ran should only be settled by arbitration.
In the unanimous opinion, Justice Ketanji Brown Jackson said a court must decide where the dispute will be handled.
“We conclude that a court, not an arbitrator, must decide whether the parties’ first agreement was superseded by their second,” she wrote in the opinion.
The Coinbase (COIN) case involved two contracts — the Coinbase User Agreement, which states that an arbitrator must decide all disputes under the contract, and the Official Rules for the promotional sweepstakes, which states that California courts “shall have sole jurisdiction of any controversies regarding the promotion.”
https://www.msn.com/en-us/money/markets/coinbase-stock-slides-after-supreme-court-rules-against-it-in-sweepstakes-suit/ar-BB1mVwlP
https://www.theepochtimes.com/business/supreme-court-rules-9-0-against-cryptocurrency-exchange-coinbase-5655858?utm_source=partner&utm_campaign=TheLibertyDaily
https://www.washingtontimes.com/news/2024/may/23/supreme-court-rules-against-coinbase-arbitration-d/