“We could never afford an eight figure settlement.”
The Plaintiff’s bar hears that all the time.
And it looks like they just cracked the code with an UNTHINKABLY long timetable for payment in a new TCPA class settlement.
In THOMAS NIEMCZYK v. PRO CUSTOM SOLAR LLC, d/b/a MOMENTUM SOLAR the Plaintiff’s lawyers– lead by ace headache causer Yeremy Krivoshey– wouldn’t take a dime less than $20MM. And when the Defendant couldn’t come up with the money, they reached a deal that will see the Defendant making payments for the next fifteen years!
15 years!
Plus if PCS raises capital they have to pay 12% of it toward the settlement paydown!
Just insane.
All total the settlement could cost PCS up to $30MM if they take the entire time to pay back the money.
Here’s the deal structure:
- Momentum will pay $22 million over fifteen years.
- The first payment in the amount of $1 million due now;
- On the first, second, third, fourth and fifth years Momentum will have to make additional payments in the amounts of $2.0 million, $1.25 million, $1.75 million, $1.75 million and $2.25 million;
- Beginning on the sixth anniversary Defendant will begin annual payments of $1.2 million per year into the Common Fund, which payment will continue for ten (10) years until an additional $12 million has been paid for a total of $22 million;
- In addition, Momentum will also pay into the Common Fund twelve percent (12%) capital it raises provided that the total amount paid into the Common Fund under all circumstances and via all means will not exceed $30 million; and
- There’s a “QuickPay Option,” allowing Momentum to satisfy all of its financial obligations under the Settlement if it contributed $20 million into the Common
Fund within seven (7) years.
Insane right?
Momentum has to come up with AT LEAST $20mm– but only if it is paid in 7 years. Otherwise the number is somewhere between $22-30MM.
What an insane a drag on resources.
But notice here, the payments are theoretically not so bad– a million or two a year is a tough pill to swallow, but perhaps one a company with $100MM+ in revenue is willing to accept.
But my goodness, HOW TOUGH IS THIS. A TCPA judgment follows the company around for 15 years.
That’s terrible.
Don’t let it happen to you!
Avoid this sort of TCPA-related chaos be sure to educate yourself and request a copy of the TOTALLY FREE Troutman Amin, LLP TCPA Annual Review (2025 Ed.), presented by Contact Center Compliance!
Totally free. Just ask!
Chat soon.