Kaiser Permanente TCPA Class Action Lawsuit Reaches $5.3M Proposed Settlement

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Los Angeles, CA: Preliminary approval has been granted by a federal judge of a $5.3 million settlement in a Telephone Consumer Protection Act (TCPA) class action lawsuit against Kaiser Permanente alleging the health care organization sent unsolicited, pre-recorded messages to former customers' cell phones.

According to legal documents, the class action lawsuit alleged Rafael David Sherman violated the TCPA by sending the messages to cell phones of former customers after they had canceled their health insurance plans with the company.

Under the terms of the proposed settlement, class members can expect to receive a pro rata share of the settlement proceeds, and if all of the approximately 864,412 members file a claim, each will receive approximately $4. If more than 1,000 class members opt out of the settlement, Kaiser has the right to terminate the settlement.

Filed initially filed on April 24, 2013, in federal court, Sherman claimed Kaiser violated the TCPA when it called him after he canceled his health insurance plan with the company. Sherman filed a motion for settlement on October 21.

Attorneys fees will not exceed 25 percent of the settlement fund and an incentive award for Sherman will not exceed $1,500. The defendant denies that it committed any wrongful act or violated any law or duty, including that it lacked prior express consent to make the calls, according to the settlement document.

A final approval hearing is scheduled for April 27. The case is U.S. District Court for the Southern District of California case number: 3:13-cv-00981.

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