April 12, 2017
A United States District Court in Illinois has awarded attorneys’ fees of at least $15.6 million to the TCPA lawyers which shepherded through the largest class settlement in the history of the Telephone Consumer Protection Act (“TCPA”).
What was the nature of the TCPA lawsuit and the agreed upon settlement?
The underlying lawsuit against Caribbean Cruise Line, Inc. and its marketers involved allegations that millions of consumers nationwide had received advertising phone calls placed through use of an automated dialing system without their prior written consent in violation of the TCPA. The suit was ultimately settled following nearly four years of unsuccessful efforts to have the lawsuit dismissed. The settlement, in which the defendants agreed to establish a common recovery fund of between $56 million and $76 million, had preceded the plaintiffs’ counsel’s request for attorney’s fees in the amount of one-third of the common fund. In a detailed legal analysis which considered factors such as the value added to the recovery by plaintiffs’ counsel, and the fact that the case progressed as far as it did (having settled on the eve of trial), the court ultimately awarded counsel fees in the range of 25% of the common fund, totaling a staggering $15.6 million – $18.98 million.
The Importance of TCPA Lawyers – Protect Your Business from Liability
We have written extensively about the increasing interest, from class action attorneys and regulators alike, in telemarketing calls placed through use of automated technology. This case demonstrates the potential crippling liability associated with the continued aggressive pursuit of alleged TCPA violations. This settlement should serve to reinforce the notion that, in today’s regulatory environment, it is imperative to have telemarketing practices and procedures examined by experienced counsel in order to avoid potentially disastrous consequences in the event that a class action plaintiff or federal regulator brings a TCPA lawsuit for alleged telemarketing-related violations.
If you are interested in learning more about this topic or need to review your telemarketing practices and procedures, please e-mail us at info@kleinmoynihan.com, or call us at (212) 246-0900.
The material contained herein is provided for information purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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