Class action suit against Coinbase alleges violations of consumer laws during the Dogecoin sweepstakes. The lower court determined that federal court, rather than arbitration, was the appropriate forum for the suit. Coinbase appealed this ruling, but the Ninth Circuit unanimously upheld the lower court's decision, keeping the putative class action against Coinbase in federal court.
Although Coinbase's user agreement includes an arbitration clause, the sweepstakes' official rules designated the California Federal Court as the exclusive forum for disputes. Given that the plaintiffs held Coinbase accounts before entering the sweepstakes, the terms of the sweepstakes contract prevail for disputes related to the sweepstakes.
3:21-cv-04539; 22-15209
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