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Nationwide drugstore chain CVS has agreed to a $15 million robocall settlement in a class action lawsuit filed against them in 2014.
The filing plaintiffs asked an Illinois federal judge to start the approval process on this offer rather than endure the risks of a more extended litigation period.
The robocall settlement is based upon allegations that the drug store chain willfully used an autodialer or automated telephone dialing system (ATDS) to call 233,079 consumers with reminders to get their annual influenza shot. In addition to offering the reminder, CVS purportedly used the opportunity to advertise special discounts, perks, and gift cards.
The complainants want to pursue the robocall settlement which will net approximately $35 for each Class Member after covering the cost of counsel, fees, and incentive awards. The other alternative is to risk the Telephone Consumer Protection Act (TCPA) case will proceed to trial in as far out as another year. Further purposeful delays pursued through the legal appeals process could result in zero benefits for class members.
CVS Continues to Deny Wrongdoing
The terms of the $15 million TCPA settlement allows for CVS to continue to deny wrongdoing. The drug store chain has been accused of being in violation of both federal and state law—the TCPA and the Illinois Telephone Automatic Telephone Dialers Act. Violations allegedly amounted to using an ATDS to make unsolicited robocalls with prerecorded messages.
The plaintiffs indicated to Law360 that the case would face serious challenges if it were to go to trial—such that the Class Members might not end up recovering any damage award. Among the worries was a consistent effort on the part of CVS to allege that the phone calls were made to consumers that had provided their phone numbers to the store and thus given tacit permission to be contacted.
Mediation History
The plaintiffs, Kearby Kaiser and Carl Lowe, filed the CVS class action lawsuit in May 2014. The first mediation between the parties occurred a year and a half later in November 2015. A final attempt at mediation was made last September but to no avail.
If the settlement offered by CVS pharmacy is approved, roughly one-third of the recovered funds will be distributed to the associated counsel along with reimbursement of any upfronted out-of-pocket expenses related to the case. Kaiser, as class representative, would receive an incentive award amounting to $15,000. Once Class Members are paid, the remainder will go toward covering administrative costs.
The CVS TCPA Class Action Lawsuit is Lowe et al. v. CVS Pharmacy Inc. et al., Case No.1:14-cv-03687, 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.
This article is not legal advice. It is presented
for informational purposes only.
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