Smartphone Privacy Settlement Hits Rough Patch

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In the two months following the announcement of the global settlement for the smartphone privacy multidistrict litigation, the consumer plaintiffs and the settling cellphone companies informed a California federal court that they are struggling to finalize the terms of the proposed privacy class action settlement.

The proposed smartphone privacy class action settlement would have resolved claims brought forth in this class action lawsuit that numerous cellphone companies and mobile software companies illegally collected consumers’ data without their knowledge or consent.

Attorneys from both parties filed a letter to U.S. District Judge Edward M. Chen indicating that the consumer plaintiffs and the mobile software and cellphone companies had made tentative agreements to continue with mediation sessions in the near future.

The letter, jointly submitted by all parties involved in smartphone privacy class action lawsuit, states that the global privacy class action settlement that was announced in June of this year had been reached after four mediation session with retired judge James Larson. “However, in finalizing the terms of the settlement agreement an impasse has been reached between the parties and the settlement agreement has not been finalized and signed,” the attorneys for the parties explain.

No further details were given regarding roadblocks to the smartphone privacy negotiations, though the letter did explain the parties’ intent to hold a status conference to explain the hangups to Judge Chen.

Court records for the smartphone privacy class action lawsuit track the months of negotiations between the plaintiff consumers and the defending cellphone and mobile software companies, promises of an imminent privacy class action settlement, and an agreement-in-principle that defendant Carrier IQ reached with the plaintiffs in November 2014.

The smartphone privacy class action lawsuit alleges mobile software developer Carrier IQ designed and developed a smartphone software that collected and transferred sensitive data off consumers phones. This software was subsequently installed by cellphone companies, including HTC, Samsung, Huawei Devices USA Inc., LG Electronics MobileComm U.S.A Inc., Motorola Mobility LLC and Pantech Wireless Inc., which also wrote code so that this software could be used with their smartphone.

According to the plaintiffs, the cellphone and mobile software companies’ collection of consumers’ text messages, internet searches, user names, and passwords violate the Wiretap Act.

In August of last year, Carrier IQ and many of the defending cellphone companies attempted to have the smartphone privacy class action lawsuit dismissed, claiming the plaintiffs failed to properly allege “intercepted content” claims under the Wiretap Act.

Judge Chen granted the defending companies partial dismissal for some of the claims, but also left room for plaintiffs to amend their privacy class action claims. Since then, the parties entered into mediation, though settlement seems to be a bit farther off than originally projected.

The plaintiffs are represented by Joseph H. Malley, Law Office of Joseph H. Malley, PC, Steve W. Berman and Robert F. Lopez of Hagens Berman Sobol Shapiro LLP and Bruce L. Simon, Daniel L. Warshaw and William J. Newsom ofPearson Simon & Warshaw LLP, and others.

The Smartphone Privacy Class Action Lawsuit is In re: Carrier IQ Inc. Consumer Privacy Litigation, Case No. 3:12-md-02330, in the U.S. District Court for the Northern District of California.

UPDATE: On Jan. 15, 2016, the plaintiffs asked for a deadline extension for filing a settlement agreement. In the court document it states that all parties have agreed to the terms of the smartphone privacy class action settlement but were unable to get the signatures needed by Jan. 15. The parties anticipate that by Jan. 22, 2016 all signatures will be collected.  

UPDATE 2: On Jan. 22, 2016, the plaintiffs filed a motion for preliminary settlement approval and class certification in the case In re: Carrier IQ Inc. Consumer Privacy Litigation. Nearly 79 million tablet and smartphone owners will be covered by the proposed deal, which will provide $9 million in monetary relief to affected consumers and certain injunctive relief, if approved.

UPDATE 3: On Mar. 1, 2016, a California federal judgegranted preliminary approval of the $9 million smartphone privacy class action lawsuit settlement.

UPDATE 4: On Apr. 6, 2016, the Smartphone Privacy Class Action Settlement is now open! Click here to file a Claim Form or visit www.CarrieriQSettlement.com for more details.

UPDATE 5: On June 23, 2016, consumers in this privacy class action lawsuit against several tablet and smartphone makers urged a California federal court to accept a settlement that would resolve allegations that the companies installed wiretapping software on mobile devices.

UPDATE 6: On Oct. 1, 2018, Top Class Actions viewers started receiving checks from the Smartphone privacy class action settlementworth as much as $417. Congratulations to everyone who file a claim and got PAID!