Emily Sortor  |  August 7, 2019

Category: Legal News

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A man looks at his mobile phone.Rack Room Shoes Inc. has agreed to a $25.97 million settlement to end class action claims that store sent spam text messages to customers without their consent.

Per the terms of the proposed settlement deal, around 5.2 million people would be eligible for either $5 in cash and a $10 voucher for Rack Room products. Customers stated that the litigation leading up to the settlement deal was “contentious.” The settlement deal was reached not because Rack Room had admitted liability, but because both parties had agreed to settle in the interest of avoiding the risk of continuing litigation.

Under the proposed settlement deal, the customers’ attorneys would receive almost 16 percent of the settlement fund. The lead plaintiff would receive $10,000 for his role in the Rack Room class action lawsuit.

The Rack Room class action lawsuit was filed by Maxwell Goldschmidt, who called the proposed settlement deal “exceedingly fair and well within the range of preliminary approval.” Rack Room also spoke positively of the proposed deal.

In his Rack Room spam text messages class action lawsuit, Goldschmidt said that Rack Room sent him numerous spam text messages over the course of 2017 without his consent. Goldschmidt filed his Rack Room class action lawsuit in April 2018.

He says that these messages were sent in violation of the Telephone Consumer Protection Act because they were sent without his consent and with the use of an automatic dialing system.

Allegedly, the Rack Room messages were sent in an effort to advertise Rack Room products, and were sent to many people at once.

The Rack Room spam text class action lawsuit says that Rack Room made no effort to comply with the TCPA by requesting consent before contacting Goldschmidt or other customers. Allegedly, Rack Room knew or should have known that these messages were sent in violation of the TCPA, and sent them nonetheless.

Allegedly, Goldschmidt knew that the messages were sent to many people because they were sent using a “short code” number commonly used to send text messages en masse and because of the general advertising language used in the messages.

Goldschmidt said that he and the other affected customers were injured by the spam messages because their privacy was violated and that they caused “aggravation, annoyance, trespass, and intrusion of seclusion.”

Allegedly, the spam messages were sent to many people repeatedly over the course of four years and advertised rewards programs with the company.

In his Rack Room TCPA class action lawsuit, Goldschmidt sought damages on behalf of himself and all other similarly affected customers in the amount of up to $1,500 for each violation of the TCPA. He also sought an injunction barring the company from sending unlawful spam text messages to individuals.

Goldschmidt is represented by Manuel S. Hiraldo of Hiraldo PA, Roberto L. Costales, Jonathan Mille Kirkland and William Henry Beaumont of Beaumont Costales LLC, and Scott A. Edelsberg of Edelsberg Law PA.

The Rack Room Shoes TPCA Violation Class Action Lawsuit is Goldschmidt v. Rack Room Shoes Inc., Case No. 1:18-cv-21220-KMW, in the U.S. District Court for the Southern District of Florida.
UPDATE: October 2019, the Rack Room class action settlement is now open.Click here to file a claim.

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29 thoughts onRack Room TCPA Class Action Reaches $26M Deal

  1. Jason Dixon says:

    Asd me

  2. Mary Cavagnaro says:

    Add me please

  3. Dana Johnson says:

    Add me

  4. Jacqueline S. says:

    Please add me

  5. Ashley Jones says:

    Add me

  6. Sharon A Chandler-hunt says:

    Please add me yo the track room class act ion lawsuit

  7. James Tritchler says:

    Please add me to this class action against RACK ROOM SHOES TPCA VIOLATION case 1:18-cv-21220-KMW. Thanks !

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