Amended Robocall Settlement Sends Money Directly to Class

The renegotiated terms of a proposed $6 million robocall class settlement will assuage the concerns the court had with the first agreement, the parties told the Western District of Washington.

Judge Thomas S. Zilly of the U.S. District Court for the Western District of Washington rejected the first settlement in September. He cited problems with the class definition, claims process, and cy pres recipient as reasons for denying preliminary approval.

The plaintiffs said in their Nov. 6 motion supporting their amended settlement that the parties “have worked together tirelessly—including requesting a status conference with the court to ensure they fully understood the court’s concerns—to thoughtfully address each of the issues raised by the court.”

The consumers sued A Place for Mom Inc., which owns and operates a website that refers people to thousands of senior housing communities and providers. The site tricks them into providing their cell phone numbers and obscures that they are consenting to receive robocalls, the suit alleges.

The amended settlement again requires the defendant to create a $6 million fund. Class members would have the option of making a claim for a share, estimated to average about $40 each—increased from $25 in the original settlement—or give a cash donation to the Fisher Center for Alzheimer’s Research Foundation. Any unclaimed funds would go to the Fisher Center or the Electronic Frontier Foundation as cy pres.

The parties changed the claims process to address the court’s concern that the original settlement required class members to make claims to receive a payout.

All class members with known addresses will receive an automatic payment without having to make a claim, the parties say.

They also agreed on a claims process for members with unknown addresses to seek settlement funds, saying they “fully believe” such a claims process is supported by case law.

The court also questioned the Fisher Center as a cy pres recipient, saying it may be of interest to consumers seeking nursing home options, but doesn’t relate to the robocall claims alleged.

Though the parties didn’t directly address this criticism, they added the EFF, which defends consumers privacy rights, as a recipient.

Lieff Cabraser Heimann & Bernstein LLP, Frank Freed Subit & Thomas LLP, and others represented the consumers. Perkins Coie LLP represented the defendant.

The case is Pine v. A Place for Mom, Inc., W.D. Wash., No. 17-1826, motion for settlement approval 11/6/19.