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Financial Services Law Insights and Observations

District Court approves $1.95 million TCPA settlement

Courts Settlement TCPA Class Action Debt Collection

Courts

On February 7, the U.S. District Court for the Eastern District of Missouri granted final approval to a $1.95 million settlement in a class action TCPA suit concerning allegations that a defendant debt collection company placed calls to consumers’ cell phones through the use of an artificial or prerecorded voice without first obtaining consumers’ prior express consent. The plaintiff also claimed that the defendant allegedly repeatedly delivered artificial or prerecorded voice messages to wrong or reassigned cell phone numbers that did not belong to the intended recipient. According to the plaintiff, the defendant continued to place calls to his cell phone even after he informed a company representative that it had the wrong number and that he did not know the individual the defendant was attempting to reach. The plaintiff sued alleging violations of Section 227(b)(1)(A)(iii) of the TCPA. While denying all liability alleged in the lawsuit, the defendant agreed to the terms of the settlement agreement, which defines class members as “[a]ll persons in the United States who (a) received a call from [the defendant] between December 16, 2017 and July 7, 2022 on their cellular telephone, (b) with an artificial or prerecorded voice, (c) for which [the defendant’s] records contain a ‘WN’ designation and an ‘MC’ and/or ‘MD’ notation.” The defendant is required to establish a $1.95 million settlement fund, pay $650,00 in attorneys’ fees and $10,477 in costs and expenses, and pay a $10,000 incentive award to the named plaintiff.