CY PRES PAY DAY: The NCLC Just Rakes in $1.7MM From a TCPA Judgment– But $6MM is Still Available; Will it Go to R.E.A.C.H.?

So the National Consumer Law Center (NCLC) frequently advocates for a broader TCPA on behalf of its “low income clients” while raking in massive dollars from Plaintiff’s lawyers that funnel funds to it via cy pres distributions in TCPA settlements and judgments.


Meanwhile spreads the word about the TCPA and the need to comply with the law… for free.

And Responsible Enterprises Against Consumer Harassment (R.E.A.C.H.) has provided MUCH NEEDED standards and education to the marketing and lead generation industries promoting TCPA compliance and the end to unwanted calls.

Yet neither R.E.A.C.H. nor have ever received a penny in cy pres distributions.

But that may be about to change.

In Krakauer v. Dish Network, LLC, 2023 WL 6626112 (M.D. N.C. October 11, 2023) the Court acknowledged $17MM in cy pres funds were available to be distributed but only distributed approximately $11MM of funds based on a special master’s proposal from some time ago.

The NCLC noticeably is receiving $1.7MM–a massive haul for the supposed non-profit.

The Court refused to distribute all $17MM, however, specifically requiring the special master (LESLIE J. WINNER) to consider other cy pres recipients. And I can think of no organizations worthier than R.E.A.C.H. or and I plan to let her know.

BTW–I really respect the Court for holding back some of the funds here. Plus the Court is imposing some pretty strict requirements on recipients of the money to account to it for its use:

As a condition of the distribution, each cy pres beneficiary must: (1) agree to spend the funds in the manner proposed in the application submitted to the special master, (2) file on the public docket an annual report confirming that use and explaining in summary fashion how the distributed cy pres funds were spent during the previous year, and (3) otherwise agree to answer the Court’s questions about the spending of the money.

Because the recipients proposed using the funds over a specified period of years, the Court will order disbursement in annual amounts, over the term of years requested. Each approved project ranges in length from two to four years. For four-year and two-year projects, distributions will be made in equal yearly installments based on the length of each project. For recipients with three-year long projects, the first distribution will cover 40% of the total approved funding, followed by two distributions of 30% the following two years. This schedule can be modified for good cause shown by a particular recipient.


As mentioned, I will be reaching (pun) out to Ms. Winner on behalf of R.E.A.C.H. and to advocate that the money would be best distributed to these organizations that ACTUALLY DO SOMETHING to spread information about–and compliance with–the law.

Will keep everyone posted.


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