$9M Tablet, Smartphone Privacy Class Action Settlement Announced

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On Friday, a proposed class action settlement between tablet and smartphone manufacturers and consumers who allege their mobile devices were installed with wiretapping software was filed with the Court.

On January 22, 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.

The proposed class includes all persons in the United States who, since Dec. 1, 2007, purchased, owned or were an authorized user of any telephone or tablet manufactured or marketed by the defendants that was equipped with Carrier IQ software. Defendants include HTC, LG, Motorola, Samsung, Pantech and Huawei.

Case History

The smartphone privacy settlement draws to a close a nearly 4-year legal battle that began in 2011, when news broke that some of the largest smartphone manufacturers were using a software program that could collect text messages, user names, passwords, Internet searches and other communications from mobile devices.

Concerns arose that the content of consumers’ private electronic communications was being captured and transmitted off users’ devices to unintended third-party recipients in violation of several laws, including the federal Wiretap Act.

By the end of 2011, consumers around the country had filed over 70 class action lawsuits against the manufacturer of the software, the now defunct Carrier IQ, and several device manufacturers, including Motorola, Samsung, HTC, LG Electronics and other companies.

The cases were consolidated into multidistrict litigation where plaintiffs have been battling a series of motions by the defendants to dismiss the allegations. In January 2015, defendants were able to successfully have a number of claims dismissed, including alleged violations of the Wiretap Act.

The parties have been negotiating a settlement agreement since June 2015, but struggled to finalize the terms of the proposed smartphone privacy settlement until now.

Settlement Details

Documents filed Friday did not indicate how much money Class Members could claim, only that awards will be distributed an a pro rata basis from the proposed $9 million Gross Settlement Fund. Plaintiffs are asking that Gilardi & Co. LLC be appointed as Settlement Administrator.

If the Court grants preliminary approval and provisionally certifies the Settlement Class, plaintiffs are requesting that a Settlement Notice program begin no later than 35 days after January 22. They are further requesting Class Members have 60 days after the Class Notice Date to file claims, opt out, exclude themselves or object to the Carrier IQ class action settlement.

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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 Settlement is In re: Carrier IQ Inc. Consumer Privacy Litigation, Case No. C-12-md-2330-EMC, in the U.S. District Court for the Northern District of California, San Francisco Division.

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

UPDATE 2: 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 3: 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.