Illinois federal court approves $800,000 class settlement for alleged TCPA violations

The US District Court for the Northern District of Illinois recently granted final approval of a $800,000 settlement between class plaintiffs and specialty pharmaceutical company Xspire Pharma, LLC in connection with allegations that Xspire companies violated the Telephone Consumer Protection Act (TCPA) in August 2019 when they sent more than 8,000 unsolicited facsimile advertisements that did not contain an opt-out notice as required under the TCPA.  The order, that was issued by the court on September 13, 2021, comes two years after Illinois-based Glen Ellyn Pharmacy, Inc. filed the suit in September 2019 accusing Xspire of willfully violating the TCPA and invading plaintiffs’ statutory right of privacy, seeking damages and injunctive relief on behalf of parties who received the fax advertisement for pharmaceutical services and products.

Under the terms of settlement, Xspire will create a $800,000 Settlement Fund from which approximately $256,000 in attorneys' fees , $10,000 in incentive awards to the class representatives, and no more than $30,000 in administrative costs will be paid.  The balance of the fund will be distributed to the settlement class defined as all persons and entities that were successfully sent fax advertisements by Xspire or one of its companies on or about August 4, 2019 that did not contain an opt out notice.  According to the order, a total of 1,528 valid claims were submitted, and there were no members who objected to the terms of settlement.  According to the plaintiff’s final approval memorandum, each class member is expected to receive approximately $330.

Final Approval Order | Plaintiff's Memo in Support of Final Approval of Settlement | Second Amended Complaint

 
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