Rodriguez de Quijas v. Shearson/American Express, Inc.

A group of investors (plaintiffs) sued Shearson/American Express (defendant) for violations of federal securities law, even though they had previously agreed with Shearson to arbitrate all disputes. The district court sided with the investors, ruling the arbitration clause invalid under federal securities law based on older precedent disfavoring arbitration in this context. The court of appeals reversed, and the investors sought certiorari.