$28M Settlement Will Resolve Alarm.com TCPA Class Action Lawsuit

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A $28 million settlement agreement has been reached in a class action lawsuit alleging Alarm.com violated the Telephone Consumer Protection Act (TCPA) by using autodialers to send prerecorded ads to more than 1.2 million consumer’s cell phones.

According to the TCPA alarm class action lawsuit, Alarm.com sent a slew of advertising messages in violation of the TCPA in December 2015.

The plaintiffs alleged that Alarm.com hired another company, Alliance, who sent telemarketing messaged on their behalf.

The company proceeded to violate the TCPA in four ways, according to the Alarm.com class action lawsuit:

• They made calls to cellphones using autodialers and pre-recorded messages;
• They also made calls to residential landlines to autodialers and pre-recorded messages;
• They made calls to numbers on the National Do Not Call list;
• They made calls in violation of internal Do Not Call regulations.

The Telephone Consumer Protection Act is a law that protects consumers from annoying or harassing telemarketing, without prior express consent.

Under the TCPA, companies are prohibited from using automatic dialing systems, or autodialers, that randomly select numbers to call using an automated system.

Use of robocalls, or pre-recorded voice messages, are also prohibited. The TCPA also set up the National Do Not Call registry that allows consumers to add phone numbers that they do not wish to receive telemarketing calls.

Companies who are found to have violated the TCPA can face steep fines – up to $500 for each negligent violation up to $1,500 for each willful violation of the law.

Alarm.com is a security services company. According to the Alarm.com class action lawsuit, the plaintiffs and other consumers received numerous calls in violation of the TCPA touting Alarm.com services.

Under the terms of the TCPA alarm class action settlement agreement, those who received calls from the company and did not provide consent could be entitled to a $95 to $143 payout. Each payout depends on the number of valid claims submitted.

Class Members include consumers who received a call from or on behalf of Alarm.com starting December 2011, along with those on the Do Not Call Registry who received a call.

In addition to the $28 TCPA alarm class action million payout, Alarm.com has agreed to change its advertising practices and policies.

“The amount of the Settlement Fund approximates publicly-traded Alarm.com’s entire net income in its best year ever in the Class Period (2017, when its net income was $29.2 million) and exceeds its net income in all preceding years,” notes the plaintiffs’ motion for preliminary approval of the TCPA alarm class action settlement.

“Alarm.com will also make changes to its practices that will benefit all members of the Settlement Class regardless of whether they submit a claim. Among other things, Alarm.com will no longer allow Alliance Security, Inc., the entity that made the telemarketing calls at issue in this case, to market or activate new accounts for Alarm.com, and has implemented changes to its practices to increase TCPA awareness among its employees.”

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs and Class Members are represented by Chiharu Sekino of Shepherd Finkelman Miller & Shah LLP, Beth E. Terrell, Jennifer Rust Murray and Adrienne D. McEntee of Terrell Marshall Law Group PLLC, John W. Barrett, Jonathan R. Marshall and Ryan McCune Donovan of Bailey & Glasser LLP, Edward A. Broderick of Broderick & Paronich PC, and Matthew P. McCue of the Law Office of Matthew P. McCue.

The Alarm.com TCPA Class Action Lawsuit is Abante Rooter and Plumbing Inc., et al. v. Alarm.com Inc., et al., Case No. 4:15-­cv-06314, in the U.S. District Court for the Northern District of California.

UPDATE: December 2019, some Alarm.com class action settlement Class Members were required to fill out a W-9 due to payout amounts being higher than originally estimated.

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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