Michael Sizemore, et al. v. Changpeng Zhao, et al., No. 23-cv-21261-ALTMAN/Reid (S.D. Fla. Apr. 9, 2026)
Apr 09, 2026OUTCOME: Motion to Compel Arbitration Denied in Federal Class Action Against Binance
Successfully opposed a motion to compel arbitration in a federal class action pending in the Southern District of Florida against Binance and related entities. The defendants—who were not signatories t ... o the governing Terms of Use—argued they could nevertheless force plaintiffs into arbitration under theories of delegation and equitable estoppel. The Court rejected those arguments and denied the motion in full, holding that non-signatories cannot compel arbitration absent a valid agreement with the plaintiffs, and that equitable estoppel does not apply where the claims are not grounded in the underlying contract. The Court also declined to extend delegation principles to allow non-signatories to decide arbitrability. This decision reinforces important limits on the use of arbitration provisions in complex litigation—particularly where corporate entities attempt to rely on contractual relationships they did not enter into. The ruling preserves plaintiffs’ ability to litigate claims in federal court and reflects a broader trend of courts scrutinizing efforts to expand arbitration beyond its contractual foundations.
