The 9th U.S. Circuit Court of Appeals will hear oral arguments on Wednesday in a lawsuit that public advocacy groups say could be important in clarifying whether for-profit government contractors can force lawsuits against them into arbitration.
The proposed class action, filed in 2014, challenges a bad check restitution program run by California-based Victim Services, a private company under contract with the state’s local district attorneys. The lawsuit says Victim Services sent letters to bad-check writers threatening criminal prosecution if they did not participate in the program and included an arbitration agreement in fine print on the third page of the letter.
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