American Eagle Outfitters Settles Text Message Class Action for $14.5M

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American Eagle Outfitters has agreed to a $14.5 million settlement, resolving claims that it sent unsolicited text messages in violation of federal law.

Plaintiffs in this consolidated American Eagle Outfitters class action lawsuit filed an unopposed motion for settlement approval last week. The settlement is expected to provide payouts to about 618,000 Class Members who received unsolicited text messages over the past six years, sent on behalf of American Eagle Outfitters.

Under terms of the American Eagle Outfitters settlement, the defendant will pay a total of $14.5 million to cover payments to Class Members, incentive awards for the named plaintiffs, court costs, attorneys’ fees, and administrative costs of the settlement.

Class Members who submit valid and timely Claim Forms are expected to receive payments between $142 and $285 each. In addition, named plaintiffs Christina Melito, Christopher Legg, Alison Pierce, and Walter Wood would each receive an award of up to $10,000.

This settlement arises out of several separate American Eagle Outfitters class action lawsuits that were consolidated in March 2015 in a federal court in New York.

Plaintiffs alleged they received text messages advertising AEO sales, coupons and new merchandise, without ever having given the company their consent to be contacted that way.

Discovery revealed that American Eagle Outfitters hired marketing firm Experian Marketing Solutions Inc., which in turn hired Archer USA Inc. to send out the text messages at issue. Archer filed for bankruptcy shortly after the plaintiffs asked for copies of its text message marketing records.

Claims in this American Eagle Outfitters class action lawsuit arise under the Telephone Consumer Protection Act. The TCPA prohibits companies from using automated telephone dialing systems to make non-emergency phone contact with persons who have not given prior express consent to be contacted in that manner.

The TCPA was originally enacted in 1991 to curb automated telemarketing calls to land lines. Later amendments and legal interpretations now apply the act’s prohibitions to SMS text messaging. Each call or text that violates the TCPA can put a defendant on the hook for as much as $1,500 in statutory damages.

The plaintiffs are asking the court to certify a proposed settlement Class consisting of persons who on or after Apr. 8, 2010 received a text message sent on behalf of American Eagle without having given American Eagle effective consent to be contacted that way.

More information about the American Eagle Outfitters class action lawsuit settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also “Follow” this case by using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by attorneys Beth E. Terrell, Mary B. Reiten and Adrienne D. McEntee of Terrell Marshall Law Group PLLC, Joseph A. Fitapelli, Brian S. Schaffer and Frank J. Mazzaferro of Fitapelli & Schaffer LLP, Scott D. Owens and Patrick C. Crotty of Scott D. Owens PA, and Keith J. Keogh, Michael S. Hilicki and Michael Karnuth of Keogh Law, Ltd.

The American Eagle Outfitters TCPA Class Action Lawsuit is Christina Melito, et al. v. American Eagle Outfitters Inc., et al., Case No. 1:14-cv-02440, in the U.S. District Court for the Southern District of New York.

UPDATE: The American Eagle Outfitters TCPA class action settlement is now open! Click here to file a claim.

UPDATE 2: On Feb. 3, 2020, Top Class Actions viewers started receiving settlement checks in the mail from the American Eagle class action worth as much as $242.46. Congratulations to everyone who filed a claim 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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