Schwan Unit Reaches $2.5M Robocall Class Action Settlement

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Home Service Inc., a unit of The Schwan Food Co., has reached a o $2.5 million settlement agreement in a robocall class action lawsuit alleging the company violated the Telephone Consumer Protection Act (TCPA) by placing automated calls to consumers’ cellphones without prior consent.

Plaintiff Erik Knutson filed the Schwan robocall class action lawsuit on behalf of a class projected to be in the thousands. Plaintiff Kevin Lemieux was added on Dec. 4, 2012. Customer Elation Inc. was also added as a defendant. The Court certified the class action lawsuit on Sept. 5, 2013.

In his TCPA class action lawsuit, Knutson claims that he received a call on his cellphone from Schwan’s with an artificial or prerecorded voice even though he had never given the food delivery company permission to do so.

The settlement would resolve the 2012 class action lawsuit, with the defendants paying no more than $2,535,280, consisting of a maximum $1.2 million cash contribution and up to $1,335,280 in product vouchers to be used to purchase food from the company.

According to reports, Schwan placed its calls from its own customer service center. In November 2009, Schwan’s outsourced these calls to Customer Elation. Pursuant to its arrangement with Customer Elation, Schwan’s electronically notifies Customer Elation when a call must go out, and a Schwan’s computer system generates a listing of telephone numbers associated with customers on the affected routes.

Schwan’s estimates that from April 2008 through November 2009, it made approximately 3.9 million autodialed/prerecorded calls to customers throughout the nation. Schwan’s records show whether a call was completed, and Customer Elation has records for all calls made since November 2009.

The defendants deny any wrongdoing and the agreement shall not be construed or deemed to be an evidence or an admission or concession.

After class action settlement negotiations over several months, with defendants providing plaintiffs with “extensive information concerning their claims, including data regarding telephone calls placed to putative Class Members, and such information was analyzed by a third party expert engaged by plaintiffs,” both parties agreed to a TCPA class action settlement.

“The class representatives and class counsel have concluded that the terms and conditions of this agreement are fair, reasonable and adequate to plaintiffs and are in their best interests, and the class representatives have agreed to settle the claims raised in the action pursuant to the terms and provisions of this agreement,” the Schwan robocall class action settlement agreement states.

A claims administrator shall establish and maintain a Schwan robocall class action settlement website that would enable Class Members to submit a claim and access and download the Class Notice and Claim Form.

This Schwan Robocall Class Action Lawsuit is Knutson v. Schwan’s Home Service Inc., et al., Case No. 3:12-cv-00964, in the U.S. District Court for the Southern District of California.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act. Learn more and see if you qualify for a legal claim at the Text Message Spam, Unwanted Cell Phone Calls TCPA Class Action Lawsuit Settlement Investigation.