A multi-million dollar settlement agreement of a nationwide Telephone Consumer Protection Act (“TCPA”) fax class action lawsuit has been presented to a federal judge in Massachusetts for approval.
What was the nature of the TCPA fax class action lawsuit and the agreed upon settlement?
The underlying TCPA fax class action lawsuit against a pharmaceutical manufacturer and its respective marketers involved allegations that thousands of health care specialists nationwide had received unsolicited facsimile transmissions concerning a hepatitis C treatment-related seminar. The plaintiff alleged that the faxes at issue violated the TCPA because they were sent without the prior express written consent of the recipients, in the absence of an established business relationship with such recipients, and without including the proper opt-out language on the subject faxes. After extensive discovery, unsuccessful mediations, and significant litigation over whether the faxes constituted advertisements within the meaning of the Federal Communications Commission’s implementing regulations, the suit was ultimately settled. The settlement provides for the defendants to establish a recovery fund of $4,750,000, which sum is inclusive of an incentive payment to the class representative and payment of the plaintiff’s counsel’s attorney fees.
The Importance of TCPA Lawyers – Protect Your Business from a TCPA Fax Class Action Lawsuit
We have previously blogged about TCPA-related liability resulting from non-compliant fax marketing practices. The TCPA regulatory mandates applicable to fax marketing are intricate, nuanced, and technical. As the marketing industry has learned, the cost of noncompliance with these mandates can be devastating. As such, it is imperative for businesses operating in this space to work closely with knowledgeable counsel prior to engaging in any fax marketing campaign.