Verizon to Pay $4M to Settle Massive TCPA Class Action Lawsuit

Verizon has reached a $4 million class action settlement resolving a Telephone Consumer Protection Act (TCPA) lawsuit, alleging that the company hired a debt collector who sent numerous unwanted robocalls.

Plaintiff John Lofton alleged that the phone company made robocalls to consumers who were not even Verizon customers. John filed his TCPA class action lawsuit in California federal court, seeking to represent a class of consumers who received unwanted and illegal calls from Collecto, a debt collection vendor that allegedly used an automated dialing system to place the calls.

After undergoing mediation during the summer of 2015, John and Verizon worked out the proposed settlement. In a December memo, John requested preliminary approval of the offered settlement amount from U.S. District Judge Yvonne Gonzalez Rogers.

In his memorandum supporting the preliminary approval motion, John states that while he is confident in his claims in the class action lawsuit, he acknowledges the possibilities and risks of prolonged litigation.

The Verizon TCPA class action settlement proposes two classes of consumers, one of approximately 2,700 California residents who are claiming violations of the state’s Invasion of Privacy Act, and a national TCPA class of 240,000 members.

The settlement agreement calls for Verizon to create a general settlement fund, which will be paid out to consumers who received the unwanted robocalls and were not previous Verizon subscribers.

Overview of TCPA Allegations

Under the TCPA, it is illegal for companies to use an automated dialing system to make unsolicited phone calls to consumers.

Companies must have a live representative make the call, who must provide their name and the company they work for if asked by the consumer. Companies must also offer consumers the option of signing up for their do-not-call registry, which must be honored for several years.

Willful violation of the TCPA can result in fines of up to $1,500 per call, while negligent violations can still cost violators up to $500 per call.

The TCPA Class Action Lawsuit reported above is John Lofton v. Verizon Wireless LLC, Case No. 4:13-cv-05665 in the U.S. District Court for the Northern District of California.

UPDATE: On Feb. 26, 2016, the Verizon Wireless TCPA class action settlement is now open. Click here to file a Claim Form or visit http://DebtCollectionSettlement.com.

UPDATE 2: On Aug. 15, 2016, Top Class Actions viewers started receiving Verizon class action settlement checks worth as much as $508.08! Congratulations to our readers who submitted claims and got PAID!

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.

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