Numerous companies have been hit with lawsuits regarding their alleged violations of the Telephone Consumer Protection Act (“TCPA”). In these cases, the complaints involve robocalls, unsolicited text messages, and unwanted phone calls plaguing consumers. The big question for defendants facing these kinds of lawsuits is whether to push back on the accusations of offensive, intrusive spam marketing via litigation or to just quickly settle matters.
“The best time to consider a settlement is when both sides have some risk, because if one side doesn’t have any risk, there’s no impetus to settle,” Lieff Cabraser partner Daniel M. Hutchinson commented.
The plaintiffs in TCPA cases have one main goal: to stop the unwanted and offensive spam communications from the companies doing this form of aggressive and intrusive marketing. Though not many TCPA cases have gone to trial, according to Hutchinson, “[t]his might be a reason why some of these parties are looking at settlement, because sides settle when they see risk, and how can you not help but see risk when you don’t have the assurance of several cases having gone to trial and verdict.”
“We always want the best possible outcome for our clients,” Hutchinson continued. “That’s always going to be the guiding principle for us to decide whether the value for class members can be maximized by taking a settlement or pressing forward to try to get more despite some of the risks that we may face.”
Lieff Cabraser has spearheaded a series of groundbreaking class actions under the Telephone Consumer Protection Act (“TCPA”), which prohibits abusive telephone practices by lenders and marketers, and places strict limits on the use of autodialers to call or send texts to cell phones. The settlements in these cases have put a stop to collectively millions of harassing calls by debt collectors and others and have resulted in the recovery by consumers across America of over $200 million.
About Daniel Hutchinson
A partner in Lieff Cabraser’s San Francisco office, Mr. Hutchinson’s practice has been focused on complex class and collective actions that have advanced the public interest. He is an advocate for underrepresented and disadvantaged communities, and has litigated cases involving unfair employment practices against immigrants. Mr. Hutchinson has pursued a series of consumer protection cases against major banks and financial services providers. His efforts have helped result in the largest monetary settlement in the history of the Telephone Consumer Protection Act and ended harassing automated calls to millions of consumers.