On October 12, 2016, the United States District Court for the Eastern District of Pennsylvania issued final approval of the $5.2 million settlement, resolving a Telephone Consumer Protection Act (“TCPA”) class action lawsuit against Power Homes Remodeling Group LLC (“Power Homes”). Of the $5.2 million settlement, $1.3 million will be paid to plaintiff’s attorney, $1.2 million will be paid to the settlement claims administrator, and plaintiff’s law firm will receive an additional $20,000 in litigation expenses. The named plaintiff will receive a $3,000 incentive award.
Why did Power Homes Settle the TCPA Class Action?
Power Homes TCPA Class Action Settlement
In its opinion approving the $5.2 million TCPA class action settlement, the Court noted that Power Homes claimed to have obtained consent to place telemarketing calls to the cellular telephones of not only the named plaintiff, but additional class members as well. The Court approximated that the proposed class would number 1.1 million people. The Court also noted that the parties disputed whether prior express consent or prior express written consent would be the proper liability standard in this action. Nevertheless, after mediation before a magistrate judge, Power Homes chose to settle the matter. The Court issued final approval of the settlement despite the fact that “[t]he anticipated award per claimant is approximately $26.63.”
Last month, we blogged about American Intercontinental University’s inability to dismiss a putative TCPA class action. The costs associated with TCPA class action litigation, whether via an award of damages or settlement, can be astronomical. In this litigious climate, it is therefore imperative that businesses consult with experienced counsel before commencing any telemarketing campaign.