Capital one, class members reach $75 million settlement in TCPA class action

Kyla Asbury Nov. 29, 2014, 6:00pm

CHICAGO, Ill. (Legal Newsline) - Capital One reached a settlement of more than $75 million with class members involving violations of the Telephone Consumer Protection Act.

Class members are those who received non-emergency telephone calls on their cell phones from Capital One Financial Corp., or from another company on behalf of Capital One, through the use of an automatic telephone dialing system or an artificial or pre-recorded voice in connection with an attempt to collect on a credit card debt.

The settlement requires the defendants to pay the largest settlement cash fund in the 22-year history of the TCPA, according to the settlement document filed July 14 in the U.S. District Court for the Northern District of Illinois.

Eligible class members who file qualified claims will receive a pro rata cash payment from the settlement fund.

"Not a single penny of the settlement fund will revert back to defendants," the settlement document states.

The parties reached settlement after participating in three in-person and two telephonic mediation sessions spanning over seven months before the Hon. Edward A. Infante of JAMS.

"The settlement came about only after...Infante made a mediator’s proposal, which the parties carefully considered and accepted," the settlement document states. "With this motion, plaintiffs seek preliminary approval of the settlement and provisional certification of a nationwide class for purposes of providing the class with notice of the settlement and an opportunity to opt-out, object or otherwise be heard."

Four class actions complaints were filed against Capital One in 2011 and 2012, and the complaints were consolidated and brought before the Judicial Panel on Multidistrict Litigation to transfer and consolidate the actions into a single forum.

The parties participated in three in-person mediation sessions on July 2, 2013, Nov. 4 and Jan. 29. The parties also participated in two telephonic mediation sessions.

At all times, the settlement negotiations were highly adversarial, non-collusive and at arm’s length.

Capital One and the plaintiffs agreed to a settlement only in the days following the Jan. 29 mediation and after Infante made a mediator’s proposal.

The defendants deny the allegations but agreed to settle the TCPA class action lawsuit to avoid the risk and uncertainty of litigation.

Under the terms of the settlement, Capital One, Leading Edge Recovery Solutions LLC, Capital Management Services LLP and AllianceOne Receivables Management Inc. will pay more than $75 million into a settlement fund.

Class members include consumers who received an automated call from Capital One between Jan. 18, 2008 and June 30, regarding a Capital One credit card account; or an automated call from AllianceOne Receivables Management Inc., Capital Management Systems LP and/or Leading Edge Recovery Solutions LLC between Feb. 28, 2009 and June 30, regarding a Capital One credit card account. They will receive between $20 and$40, depending on how many claims are filed.

Prior to the final approval hearing, class counsel will apply to the court for an award of attorneys' fees and costs and the defendants will not contest the application for payment, according to the settlement document.

The plaintiffs are being represented by Jonathan D. Selbin, Douglas I. Cuthbertson and Daniel M. Hutchinson of Lieff Cabraser Heimann & Bernstein LLP; and Beth E. Terrell, Michael D. Daudt and Kimberlee L. Gunning of Terrell Marshall Daudt & Willie PLLC.

The defendants are being represented by Aaron D. Van Oort, Eileen M. Hunter and Erin L. Hoffman of Faegre Baker Daniels; James K. Shultz of Sessions, Fishman, Nathan & Israel LLC; Alan I. Greene of Hinshaw & Culbertson LLP; and Grace Carter of Paul Hastings.

The case was assigned to District Judge James F. Holderman.

U.S. District Court for the Northern District of Illinois case number: 1:12-cv-10064

From Legal Newsline: Kyla Asbury can be reached at

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