SETTLEMENT DISASTER: Kaiser Permanente Agrees to Settle TCPA Class Action for $10.5MM And It May Be the Worst TCPA Settlement Ever

Are SMS messages subject to DNC rules?

There’s a split of authority on the subject– and in Florida they probably are not– but Kaiser Permanente just spent $10.5MM settling an TCPA SMS message class action anyway.

Making matters worse, the class only contained 73,327 class members– meaning Kaiser paid $143.00 a class member!

$143.00 a class member? On a DNC case.

Now remember DNC cases:

1. Might not be certifiable at all (and probably aren’t);
2. Might not apply to SMS messages (and probably don’t in Florida);
3. Are subject to a good faith defense (presumably Kaiser made a booboo here and wasn’t intentionally texting people after they said stop); and
4. Damage are only “up to” $500.00 per text– not a guarantee $500.00 like in the 227(b) setting.

You put all of that together and TCPA DNC class settlements should be rare and relatively cheap–ESPECIALLY in the SMS context.

But Kaiser decided to pay MASSIVE bucks on this deal.

Let’s compare this one to the recent Albertson’s settlement– pretty much identical facts, DNC SMS case, post-stop case, same jurisdiction even and Albertson’s paid only $6MM  for a class of 283,000– just $21.00 a person. And even that is a bit high in my opinion.

But Kaiser paid seven times more! 

Why would Kaiser pay $10.5 mm for a settlement that should have cost around $1.5MM??? Its just nuts.

Meanwhile the lawyers for the class are set to get absolutely PAID. The settlement calls for an award of up to $3.46MM!!!!

Wow.

I am on the wrong side folks. I am switching to the Plaintiff’s bar. I’ve had enough of this.

I’m kidding.

Probably.

Anyway this was obviously another #biglaw special.

Hire #biglaw and take a #bigloss folks.

Case is: Jonathan Fried v. Kaiser Foundation Health Plan, Inc., d/b/a Kaiser Permanente, Case No. 2025-016220-CA-01

From the administration website:

The claim filing deadline is February 12, 2026.

 

If you are in-house at a Fortune 500 DO NOT hire #biglaw to defend your company in a TCPA class action. They WILL screw it up and you WILL overpay both for the defense and the settlement! (except for Squire and Skadden IMO).

Give us a call at Troutman Amin, LLP. We destroy #biglaw firms both in terms of results and in terms of cost. (Not a guarantee of future success, of course, but I feel pretty good about our chances.) Rates rise Jan 1. So get in now and save a boatload!

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Chat soon.