By Brigette Honaker  |  February 11, 2019

Category: Legal News

African American man arguing on phoneCall recording lawsuit settlements, including a recent settlement with Nationstar, may help California consumers recover damages for invasion of privacy.

Nationstar Mortgage has agreed to pay $6.5 million to resolve class action claims that it recorded calls to and from California consumers without their knowledge or permission.

“While plaintiffs are confident of a favorable determination on the merits, they have determined that the proposed settlement provides significant benefits to the settlement class and is in the best interests of the settlement class,” the settlement motion states. “Similarly […] Nationstar believes that it as substantial and meritorious defenses to plaintiffs’ claims, but has determined that it is desirable to settle the litigation on the terms set forth in the settlement.”

The settlement does not have final approval from a judge yet, but it would pay $10,000 in service awards to each of the two named plaintiffs and around $2.1 million, or 33 percent, in attorneys’ fees to plaintiff counsel.

The settlement Class includes people who were physically present in California, were using a cellphone with a California area code, participated in an outbound call with a representative of Nationstar for the first time, and were recorded without being informed by the representative between Oct. 23, 2014 and May 1, 2016. This Class is estimated to include around 44,000 people.

Funds which are not claimed by Class Members will reportedly be given to a nonprofit organization that allows the money to continue to benefit the Class Members’ interests. This is an alternative to the money simply reverting to Nationstar if it remains unclaimed.

As with all call recording lawsuit settlements, the defendants do not admit any wrongdoing by resolving the claims. Instead, the settlement provides a path for all parties to put the claims to rest without the risks and costs associated with continued litigation.

“Our top priority is to provide our customers with responsible, caring service,” Nationstar said in a statement to Law360. “While this settlement is not an acknowledgement of any violation of the law, we look forward to the court approving the settlement so we can put this issue behind us.”

California’s state government protects its citizens with some of the strictest privacy laws in the country. Various breaches of privacy are prohibited under these laws including the recording of private calls, but some companies may be flouting the rules and recording consumer calls without consent.

Attorneys are investigating companies which may be guilty of these violations, including: Dermalogica; Swarovski; Drs. Foster & Smith; Mears Transportation Group; Romano’s Macaroni Grill; Southwest Rapid Rewards (800-445-5764 only); United Airlines Pet Safe (800-575-3335 only); Cannondale Bicycle Corporation; and Czech Airlines.

Companies such as Drs. Foster and Smith, which coins itself as “the largest direct-to-your-door pet supply source in America”, may have recorded the calls of California consumers without their consent. Call recording lawsuit settlements with Nationstar, Drs. Foster and Smith, and other companies may help consumers recover compensation for any breaches of their privacy.

The Nationstar California Call Recording Class Action Lawsuit is Case No. 5:15-cv-02190, in U.S. District Court for the Central District of California.

If you live in California and you did not receive a warning when calling a toll-free number, your call may have been recorded in violation of California law, and you may be entitled to compensation. See if you qualify to file a California call recording class action lawsuit.

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