State Farm $7M TCPA Robocall Class Action Settlement in the Works

State Farm might be on the losing end of a $7 million TCPA robocall class action settlement in an Illinois case.

A group of consumers led by Jennifer Smith and Shawn Matejovich asked a federal judge for preliminary approval of the TCPA robocall class action settlement, which would allow each class member to receive approximately $60.

The funds are due consumers because State Farm allegedly violated the TCPA (Telephone Consumer Protection Act) by going through Variable Marketing LLC, a third-party auto-dialing service.

Plaintiffs allege that they received unsolicited cell phone calls that were unsolicited. The calls ultimately connected the plaintiffs with State Farm Mutual Automobile Insurance Co.

TCPA Robocall Class Action Settlement

The consumers were pleased with the TCPA robocall class action settlement because they were not sure they would have won as individuals if the judge had not certified the class.

“Further, the settlement compares favorably to other TCPA class action settlements,” the consumers said. “Moreover, the settlement provides class members with real monetary relief, despite the fact that this is a purely statutory damages case in which class members incurred nominal economic damages or whose actual damages (such as the invasion of their privacy) are difficult to quantify.”

The TCPA robocall class action settlement originally stemmed from a lawsuit that included several accused insurers. Smith had sued State Farm and other insurers in March 2012, but an Illinois federal judge had freed the other insurers from the suit in August 2014.

State Farm was not released from the lawsuit because consumers found substantial evidence linking State Farm agents with Variable.

Consumers accused State Farm agents of not only hiring Variable, but also dictating the timing and volume of the telemarketing calls made on State Farm’s behalf.  State Farm agents gave Variable information about the insurance products and pricing to enable Variable phone representatives to route consumers to the appropriate agents.

The TCPA robocall class action settlement will be dispersed to approximately 78,200 class members. No more than 33.3 percent will go to attorneys’ fees for class counsel, and $15,000 in service awards will go to the class representatives.

Why TCPA Robocall Class Action Settlements Are Important

The TCPA was enacted in 1991 to protect consumers from unwanted telemarketing phone calls and faxes. The act is especially designed to prevent automatic phone dialing systems from sending unsolicited phone calls and faxes to consumers.

At the time the TCPA was written, most cell phone plans charged by the phone call or by the minute, which means the recipient of such calls would be charged to receive them. This is still the case with some, but not all, cell phone plans today.

When a business such as State Farm uses an automated dialing system to reach consumers, that business should be held accountable for violating the TCPA.

If you have been the victim of an unwanted phone call or text message from State Farm or any other business, you could have a legal claim.

The State Farm TCPA Class Action Lawsuit is Smith et al. v. State Farm Mutual Automobile Insurance Co. et al., Case No 1:13-cv-02018, in the U.S. District Court for the Northern District of Illinois.

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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