Letting the class have it their way, Burger King reached an $8.5 million deal to settle a Telephone Consumer Protection Act suit over fax advertisements.
The unopposed motion in support of preliminary approval of the settlement noted that the deal would be the largest TCPA class settlement ever approved by a Maryland state or federal court.
Real estate company Jay Clogg Realty Group alleged that it received multiple faxes between December 2012 and January 2013 advertising Burger King’s BK Delivers program without the required opt-out notice. Specifically, the plaintiff charged that the fast-food chain violated the statute by failing to include language that specifically informed fax recipients that the failure of the sender to comply with an opt-out request within 30 days was unlawful.
After more than a year of contested litigation in Maryland federal court, the parties reached a deal. Burger King agreed to pay $8.5 million for a settlement fund for a class of roughly 97,000 fax recipients over a five-year period. About one-third of the fund, or $2.8 million, is allotted for class counsel.
In addition to an incentive payment for the realty group and administrative costs, the settlement fund will provide a maximum cash payment of $500 per fax to each class member up to a maximum of eight faxes, or $4,000.
To read the proposed settlement agreement in Jay Clogg Realty Group, Inc. v. Burger King Corporation, click here.
Why it matters: Yet another TCPA class action settled for millions of dollars. Burger King's agreement – if approved – would reportedly set the record for the largest payout under the statute in the state of Maryland. The deal followed an April denial of Burger King’s motion to dismiss the suit after the court ruled that the plaintiff sufficiently stated a claim, even though the real estate company did not allege that it received the faxes on a traditional fax machine.