Can A Company Shut Down a Class Action by Making a Settlement Offer?
According to an article published by Consumerist, if a company causes harm to consumers, that company cannot preempt an entire lawsuit by offering victims full settlements in advance. The United States Supreme Court made this decision on January 20, 2016.
How the U.S. Supreme Court Make This Decision
The United States Navy hired Campbell-Ewald, a marketing and advertising communications agency, to create a recruiting campaign that would only send text messages to consumers who had given permission to receive such text messages.
One man claimed he had never agreed to receive such texts and sued Campbell-Ewald, stating the company had violated the Telephone Consumer Protection Act. Although the man intended for the case to become a class action lawsuit, Campbell-Ewald offered the man a settlement and progressed to dismiss the case, disregarding the fact that the man rejected the offer.
In the end, the United States Supreme Court ruled that a settlement, which has not been accepted by a person, does not moot a plaintiff’s case. The article states the decision is a rare occurrence of a pro-consumer ruling.
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Discuss your case today by contacting our Illinois consumers attorneys at Atlas Consumer Law!