TCPA Quick Hitter: Here Are Some Cy Pres Ideas for your Next TCPA Settlement— NCLC Did NOT Make the List

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One of the strangely tricky parts about settling a TCPA class action is selecting a proper cy pres recipient. As the recent Dish settlement demonstrates, cy pres recipients may end up collecting millions of dollars as part of these settlements as perfectly good money goes unclaimed by class members.

I remember my first big class settlement back in 2013 resulted in some $800k being left over after a second distribution and I was simply shocked. Who were all of these people that made claims but then didn’t cash their checks twice? Weird.

But it definitely happens.

So picking a cy pres recipient is actually pretty important. There may be quite a bit of money headed in the recipient’s direction one day.

Now, the law provides (paraphrasing) that cy pres recipients should be organizations that promote the interests of class members. That’s a pretty fuzzy standard by design. And getting plaintiffs and defendants to agree on a single organization is actually pretty tough—these folks tend to see the world (and attendant “benefit”) through different lenses.

I’ve recently thrown tcpaworld.com’s hat into the ring as a cy pres recipient in TCPA class actions. I mean, why not? We provide excellent TCPA-related resource to the public at large, we are always pushing for TCPA compliance and—although we are certainly skewed toward the defense, we always try to provide objective information and an accurate assessment of case law. Plus my Year End Review is the most comprehensive and well-read annual TCPA review on the planet (I assume).

So keep us in mind for your next settlement.

Another good one is LeadsCouncil. This organization literally exists in order to promote high standards and compliance within the lead generation/marketing industries. I cannot think of a worthier cy pres recipient—other than TCPAWorld.com. Plus Queenie is on the board, so there’s that.

There’s also PACE. Fantastic organization that helps industry participants have their voices heard on critical regulations effecting outreach.

The one place a defense lawyer should NEVER agree to send their client’s cy pres dollars is the NCNC, of course. These folks are constantly trying to make class action lawsuits easier and operate (IMO) as the lobbying arm of the plaintiff’s bar. Handing them more dollars is the worst thing a TCPA defendant can do. They once even told Congress that the TCPA is “straightforward and clear.” I mean, come on.

Some other suggestions include SCU Privacy Law Certificate and High Tech Law Institute provide academic and Local Initiatives Support Corporation. These folks were recently approved by the court in Sanders v. Rbs Citizens, N.A., Case No. 13-cv-03136-BAS-RBB, 2021 U.S. Dist. LEXIS 22565 (S.D. Cal.  February 5, 2021). That may mean that any privacy section of any law school or college might qualify.

On that note, Go Bears.

Chat soon.

 

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Published by Eric J. Troutman

The Czar of TCPAWorld Eric Troutman is one of the country’s prominent class action defense lawyers and is nationally recognized in Telephone Consumer Protection Act (TCPA) litigation and compliance. He has served as lead defense counsel in more than 70 national TCPA class actions and has litigated nearly a thousand individual TCPA cases in his role as national strategic litigation counsel for major banks and finance companies. He also helps industry participants build TCPA-compliant processes, policies, and systems. Eric has built a national litigation practice based upon deep experience, rigorous analysis and extraordinary responsiveness. Eric and his team feel equally at home litigating multibillion dollar telecommunications class actions in federal court as they do developing and executing national litigation strategies for institutions facing an onslaught of individual TCPA matters. They thrive in each of these roles – delivering consistently excellent results – while never losing sight of the client experience. While many firms now tout TCPA expertise, Eric has been there from the beginning. He built one of the country’s first TCPA-only defense teams and began serving as national TCPA counsel for his clients nearly a decade ago. This perspective allows him to swiftly develop the right litigation strategies for dealing with recurring problems, without wasting time on tactics that are bound to fail. Eric’s rich historical perspective and encyclopedic knowledge of the TCPA landscape also make him an invaluable resource to institutional compliance teams struggling to comply with the shifting regulatory landscape. No task is too small – or too big. Indeed, Eric and his team have helped build TCPA-compliant systems and processes for some of the largest and most complex corporate entities in the country. He commonly works with in-house compliance counsel to build and implement enterprise and business-line specific TCPA solutions, performs TCPA audits and drafts and reviews proposed TCPA policies and procedures. He and his team also have the technical expertise necessary to assist call centers seeking to develop TCPA-resistant call path architecture or to modify existing telephony and software integration to better insulate from potential TCPA exposure. Eric has built a reputation for thought leadership. An avid blogger and speaker, he has been at the forefront of the industry’s effort to push for clarity and a return to sanity for the TCPA for years. He was selected to advocate for the financial services industry on important TCPA issues before the Federal Communications Commission and co-authored the nation’s only comprehensive practice guide on TCPA defense. In his spare time, Eric leads defense teams representing banks and other financial services companies in consumer finance litigation matters. He has experience representing clients in UCC, TILA, RESPA FCRA, CCRA, CLRA, FDCPA, RFDCPA and FCCPA claims, as well as in fraud and bank operations issues.

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