Text Messaging Co.’s Reach $3M TCPA Class Action Settlement

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A group of mobile messaging companies have agreed to a $3 million settlement in a class action lawsuit filed by customers alleging that the companies had collaboratively billed them numerous unwanted charges to their cellphones – cramming their messaging systems with monthly content services, without prior consent.

M-Qube Inc., Mobile Messenger Americas Inc. and CF Enterprises Pty. Ltd. agreed to pay up to $3 million for violations of the Telephone Consumer Protection Act. The companies facilitate payment transactions between third party companies and wireless carrier consumers — enabling the use of text messaging for cellphone devices for different phone service providers.

According to the class action settlement agreement, the messaging companies will refund customers for their unwanted subscriptions, with no cap on the amount of refunds, and pay at least $60 or up to $100 for each unsolicited text message until the companies reach $3 million.  If the amount per text message drops below $60, the companies can either increase the settlement amount, or release this part of the settlement.

Additionally, M-Qube has agreed to pay an injunctive relief, which will terminate all current SMS programs operated through Verizon Wireless, AT&T, Sprint and T-Mobile.  The defendants had originally proposed a $6 million class action settlement, but had been denied because their proposal involved capping the reimbursement at the proposed settlement amount.

The plaintiffs’ legal team said it is very pleased with the settlement, because it is considerably high compared to most mass TCPA settlements — which typically offer $20 to $40 per text message with a limit on the number of messages a plaintiff can bring. This settlement offers $100 per violation, with no such limit.

The Allegations

According to the TCPA lawsuit, the companies had illegally subscribed customers to their services which allowed their advertisements to be sent to the customers’ cellphones.  These messages imitated phone notifications, causing the consumer to open the message once they received it.  This caused unnecessary financial stress to the customer, the class action lawsuit claims, and violated the TCPA by both sending unwanted messages and for violating federal communication regulations.

The text spam class action lawsuit was filed on June 6, 2013, alleging that the companies were sending unsolicited text messages related to mobile content, including ringtones and information alerts, to the customers’ cellphones.  When customers clicked on the messages, they were prompted to put in their phone number, which was supplied to the mobile messaging companies.  The wireless companies would then notify the wireless carriers that the customer had subscribed to their services.  As a result, the wireless company charged the customer’s phone bill for the subscription service through a practice known as “cramming.”

Overview of the TCPA Rules

Any company found to have unintentionally violated the TCPA will be charged $500 per violation, while intentional calls can reach up to $1500.  In general, companies must adhere to a specific set of requirements when calling customers, according to the federal law.  Some of these requirements include but are not limited to:

• Companies must maintain a “do-not-call” (DNC) list of consumers who have asked not to be called, which is to be honored for five years.
• The law prohibits companies from sending messages through automated telephone equipment or an artificial or prerecorded voice to an emergency line, such as: “911”, a hospital emergency number, a physician’s office, a hospital or health care facility, a cellular telephone or any service for which the recipient is charged for the call.

This TCPA lawsuit is Cullan & Cullan LLC v. M-Qube, et al., Case No. 8:13-cv-00172, in the United States District Court of Nebraska.

UPDATE: The Mobile Content Text Spam Class Action Settlement is now open! Click here to file a claim. 

UPDATE 2: August 2017, Top Class Actions viewers who filed valid claims for the Mobile Content class action settlement began receiving checks worth as much as $130. The checks have been trickling in, so if you filed a claim keep checking your mailbox because settlement checks are on their way.

Join a Free Text Spam Class Action Lawsuit Investigation

If you received an unsolicited text message or cell phone call, you may be eligible to pursue compensation under the TCPA. Learn more and obtain a free case evaluation at the Text Message Spam Cellphone TCPA Class Action Lawsuit Investigation.