CHICAGO (Legal Newsline) - Dun & Bradstreet has settled a Telephone Consumer Protection Act class action lawsuit for an amount that a Chicago attorney and professor feels is significant.
Dun & Bradstreet recently agreed to pay more than $10 million to end a class action lawsuit in California.
The lawsuit alleges the company, which provides commercial data to businesses on credit history, is accused of contacting plaintiffs
“Given the risk, uncertainties, burden and expense of
continued litigation, the defendant has agreed to settle the action,” the court
The document also said Dun & Bradstreet has agreed to pay $10.5 million, inclusive of lawyer fees, incentive awards and administration cots to settle
the action. Most class members will receive $60 to $120 but no more than $1,500 for a
Jason Gordon, an attorney at Reed Smith and adjunct profession
at Chicago Kent College of Law, said it was a substantially large
settlement, adding "I think anything over $3 or $4 million is going
to be quite significant."
Gordon said the cost of litigation
would be a big deterrent to those involved in the case.
"I think that is probably would be quite expensive,
which is why they settled," he said. "Maybe both parties thought it would be more
expeditious to make it go away both from a timing perspective, you know, put it
behind them, but maybe from a cost perspective as well."
Gordon also wrote an article
on the settlement for his firm’s clients.
"I represent advertisers who engage in text message
marketing,” he said. “The purpose of the article was to advise my clients that when they are engaging in text messaging and
telemarketing campaign they need to exercise a great deal of caution.
the TCPA says, for example, that you need prior express written consent to
send text messages through an auto dialer.
"Auto dialing is the technology that most marketers use
to send text messages. If there is going to be a campaign offered by one of
my clients, I want them to sort of think through the issues and determine how
they are getting consent to ensure compliance with the TCPA."
Dun & Bradstreet has also notified the court that it has changed the way it contacts consumers.
"Prior to and during the pendency of this lawsuit, the defendant
initiated certain practice changes that are designed to prevent violations of
the TCPA’s provisions on dialing cell phones using an automatic telephone
dialing system,” the document said.