The United States District Court for the Southern District of California recently granted preliminary approval of a nationwide class action settlement arising under the Telephone Consumer Protection Act (“TCPA”) in an action against insurance company Kaiser Foundation Health Plan, Inc. a/k/a Kaiser Permanente.

Multi-Million Dollar TCPA Class Action Settlement

In the action captioned Sherman v. Kaiser Foundation Health Plan, Inc. a/k/a Kaiser Permanente, Case No. 13-cv-981, the named plaintiff alleged that the defendant sent unsolicited, pre-recorded messages to former customers’ mobile phones encouraging them to re-apply for insurance coverage.

Under the terms of the settlement, the defendant will pay $5,350,000.00 into a settlement fund for the benefit of class members, plus attorneys’ fees and an incentive award to the named plaintiff/class representative.

Next Steps

A claims administrator will handle the next phase of the settlement, namely providing notice to all members of the TCPA settlement class nationwide.  After the notice and claims period, the Court will hold a final approval hearing and consider whether the settlement was fundamentally fair, reasonable, adequate and in the best interests of the settlement class.

As this settlement evidences, it is important to understand the nuances of the TCPA if you are engaged in traditional telemarketing or the more novel mobile marketing.  Conservative telemarketers and those well-versed in TCPA compliance are, to a large extent, able to avoid class actions altogether.