District Court approves $2.5 million settlement over prerecorded telemarketing messages

Courts Settlement TCPA Class Action

On June 24, the U.S. District Court for the Central District of California granted final approval of a $2.5 million class action settlement resolving claims that an auto dealer group and marketing director (collectively, “defendants”) violated the TCPA by sending “prerecorded telemarketing messages” to consumers’ cell phones without receiving consumers’ express written consent. According to the second amended complaint, the plaintiff sued the defendants after he allegedly received unsolicited prerecorded text messages advertising one of the auto group’s dealerships. Under the terms of the agreement, class members (comprised of consumers who were sent prerecorded messages from the defendants, auto dealerships managed by the defendant, or anyone acting on the defendant’s behalf, including employees, agents, third-party contractors, and sub-contractors) will receive a portion of the $2.5 million settlement. The settlement amount also provides for up to $625,700 in attorneys’ fees, nearly $12,600 for costs, and $125,000 for the settlement administrator. The class representative will be given a $5,000 service award. Additionally, the defendants and dealerships are required to “adopt policies and procedures regarding compliance with the TCPA and the National Do Not Call Registry.”