Unsolicited Text Messages Net $6.5M Class Action Settlement

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Two Florida companies, Palm Beach Mall Holdings LLC and Upscale Events by Mosaic LLC, have agreed to a $6.5 million class action settlement to avoid litigation over alleged violation of the Telephone Consumer Protection Act of 1991 (TCPA).

The TCPA was created to protect consumers from harassing conduct by telemarketers.  The law came in response to new communications technologies that made it easier for companies to contact large numbers of consumers cheaply through technologies like “robodialers” and mass text messaging. This legislation was passed after Congress received massive support from their constituents to limit the ability of telemarketers and other companies to contact consumers unsolicited.

According to the text message class action lawsuit, the two companies contacted tens of thousands of residents of West Palm Beach, Florida, in 2012 via text message. These firms contacted consumers to alert them of an upcoming job fair that was intended to find laborers for construction of a new shopping center in the area. Under the TCPA, companies may not send out mass-messages using an autodialer unsolicited.

The text message lawsuit alleged that the unsolicited mass texts violated the TCPA, which forbids unsolicited mass communications. The TCPA is designed to be enforced, in part, through litigation like this class action lawsuit.

According to the motion, the companies obtained thousands of consumers’ cellular phone numbers from public voting records in order to make the mass messages. Specifically, the company allegedly obtained a CD containing voter data from the Florida Division of Elections with tens of thousands of cell phone numbers.

Initially, three other companies, EMJ Corporation, Eastern Real Estate LLC, and New England Development Incorporate had been named as defendants in the same class action lawsuit. However, they were dismissed from the lawsuit as a judge determined that these companies were not involved in the messaging. However, the case moved forward against Palm Beach Mall Holdings LLC and Mosaic LLC.

Class Members of the Palm Beach Mall text message settlement include all individuals within the United States who received a text message promoting an Aug. 21, 2012 job fair for the New Palm Beach Mall, sent by or behalf of the defendants in August 2012, without having provided either company prior express consent. Class Members can receive up to $150 each if they file a claim by the April 12, 2014 deadline. There is an ultimate cap of $6.5 million on the total settlements.

Both sides have approved the deal, and it was granted preliminary approval by a judge last October. The text class action settlement is designed to discourage future misconduct by the defendants.

Did You Receive an Unsolicited Text Message?

Federal law prohibits companies from contacting consumers on their cell phone without prior express consent. If you received an unsolicited text message or cell phone call, you may be eligible to take legal action. Learn more at the Text Message Spam, Unwanted Cell Phone Calls TCPA Class Action Lawsuit Settlement Investigation.