Papa John’s Agrees to $16.5M Text Spam Class Action Settlement
By Kimberly Mirando
UPDATE: Details on how to file a claim for the Papa John’s Pizza Text Settlement have arrived!
Papa John’s agreed on Friday to a $16.5 million class action lawsuit settlement over allegations it sent unwanted text messages to customers in violation of the Telephone Consumer Protection Act. If approved, the settlement will provide cash payments of $50 to eligible Class Members and a voucher for a free Papa John’s pizza.
The Papa John’s text settlement will resolve a 2010 class action lawsuit (Agne, et al. v. Papa John’s International Inc., et al.) that accuses the pizza chain of sending more than 500,000 illegal text messages to Papa John’s customers advertising pizza specials. The text messages were illegal, plaintiffs say, because they were sent without the customers’ consent and with the use of an automatic dialing system in violation of the TCPA.
Papa John’s International has vigorously denied any wrongdoing from the start of the case, arguing that customers gave consent to the messages when they provided their telephone numbers when purchasing a pizza. The company also argued that — as a franchisor — it is not liable for the actions of its franchisees, which were the ones who hired the marketing company OnTime4U to send the text messages.
U.S. District Judge John C. Coughenour rejected that argument in November when he granted class certification to the Papa John’s text class action lawsuit.
“Contrary to Papa John‘s position that it played no role in those decisions, Papa John‘s has produced documents that indicate that it did play some role in the franchisee-level decisions to hire OnTime4U,” Judge Coughenour said in his order.
The ruling sided with plaintiffs who argued that Papa John’s encouraged franchisees to contract with the marketer.
Under the proposed class action settlement, Papa John’s will provide up to $11 million in cash payments to roughly 220,000 customers who were sent at least one unsolicited text message that marketed a Papa John’s branded product, good or service through OnTime4U.
Another $2.86 million will be distributed as vouchers for a free Papa John’s Pizza, and $2.45 million will go to attorneys’ fees, according to court documents filed Friday, May 17.
No action will be needed to receive a free pizza voucher, but Class Members will need to submit a Claim Form in order to receive their $50 cash payment. Details on how to file a claim for the Papa John’s Text Message Class Action Lawsuit Settlement can be found in our Open Class Action Lawsuits section.
The case is Agne et al. v. Papa John’s International Inc. et al., Case No. 10-cv-01139, U.S. District Court for the Western District of Washington.
If you received an unsolicited text message or phone call to your cell phone, you may have a legal claim. Submit your information for a free review of your claims by visiting the Text Message Spam, Cell Phone Call TCPA Class Action Lawsuit Settlement Investigation. The consumer advocates working this investigation do not get paid unless you secure a class action lawsuit settlement.
Updated August 2nd, 2013
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