TCPA Class Action Statistics

Class Actions Dominate the industryFrom consumer protection to attorney enrichment

Regardless of its actual intent, any statute that incorporates a private right of action and high statutory damages incentivizes profit-driven plaintiff litigation.   This is an unfortunate fact of life in a country that prizes the rule of law, and has always been the case with the TCPA.   The following statistics summarize the dramatic rise in class action litigation over the past few years, and make clear the fact that, instead of protecting the consumer, the TCPA currently functions more as a revenue stream for opportunistic attorneys.

Class Action Growth 2010-20161,273% Increase

Class Actions Defendants by Industry

  • National Retailers: 13%
  • Communications/Utilities: 10%
  • Hospitality/Travel: 5%
  • Political: 3%
  • Education: 3%
  • Construction: 3%
  • Social Media/Technology: 26%
  • Health Care/Fitness: 24%
  • Financial: 13%

Source: Squire Patton Boggs, 2015

Frequent FilersThese ten firms filed 2,887 cases between 2014-2017

Law Firm Cases Filed
Morgan & Morgan, P.A. 744
Lemberg Law, LLC 557
Law Offices of Todd M. Friedman 488
Kimmel & Silverman, P.C. 260
Sulaiman Law Group, Ltd. 231
The Consumer Protection Firm, PLLC 179
Hyde & Swigart 141
Price Law Group, A.P.C. 112
Boss Law, PLLC 93
Sagaria Law, PC 82

Notable Class Action Settlements

Defendant Amount Year Filed
Capital One Bank $75 Million 2012
AT&T Mobility, LLC $45 Million 2013
Sirius XM Radio, Inc. $35 Million 2013
Metropolitan Life Ins. Co. $23 Million 2013
 U.S. Coachways, Inc. $49 Million 2014
 HSBC Bank Nevada, N.A. $40 Million 2014
 Life Time Fitness, Inc. $15 Million 2014
 Wells Fargo Bank, N.A. $30 Million 2015
 Wells Fargo Bank, N.A. $16 Million 2015
 Bucaneers Partnership $19 Million 2016
 Caribbean Cruise Line $76 Million 2015

Where Does The Money Go?In theory, class actions are supposed to serve justice. In practice, they serve attorneys

Average Class Action Payouts 2011-2014

Only a minuscule percentage of class members ever see a single dime of any class action settlement.  As these numbers make clear, attorneys are the true beneficiaries of TCPA class actions.
Source: Squire Patton Boggs, 2015

2011 2012 2013 2014
Attorney’s Fees: $870,000 $2,593,333 $2,911,500 $2,400,000
Per Class Member: $9.53 $3.93 $6.28 $4.12

Distribution of Recent Settlement Proceeds

Case Total Settlement Class Size Attorney Fee Allocation Class Member Allocation
HSBC v. Wilkins Bank (N.D. Ill) $39,975,000 1,400,000 $12,000,000 $20
 Couser v. Community Bank (S.D. Cal)  $8,400,000 4,000,000 $2,118,000 $1
 Connor v. JP Morgan Chase (S.D. Cal) $9,000,000 1,718,866 $3,000,000 $7.62
 Sarabari v. Weltman, Weinberg, & Reis $525,000 618,000 $225,000 $.85
Spillman v. RPM Pizza (M.D. La) $9,760,000 Unknown $3,000,000 $15, or a free one topping pizza

Source: ACA International, 2015

Individual Litigant Cases 2007-2015948% Increase

Source: WebRecon, 2016

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