The United States District Court for the Western District of
Washington preliminarily approved a $5.3 million settlement of a
Telephone Consumer Protection Act class action against taxi cab
companies Orange Cab Company, Inc. and RideCharge, Inc.
According to the complaint, the defendants worked together to
develop an app, known as "Taxi Magic," for cell phones
that enables users to use their cell phones to arrange and purchase
transportation by taxi cabs. Once a driver agrees to a request to
pick up a customer, Taxi Magic sends a text message to the
customer's phone stating the cab number, expected time of
arrival, and an invitation to download Taxi Magic. Named plaintiff
Torrey Gragg alleged that the defendants sent tens of thousands of
these unsolicited text messages to advertise Taxi Magic to cell
phone subscribers throughout the country using an automatic
telephone dialing system ("ATDS").
In 2014, the district court certified Gragg's putative
class, comprised of Washington consumers. The defendants filed a
motion to reconsider, which was denied by the Court, and also
requested an interlocutory appeal on the issue of certification,
which was denied by the Ninth Circuit. The parties subsequently
agreed to mediate the matter, and a settlement was ultimately
The settlement class consists of all persons or entities who
received at least one dispatch notification text message on their
cellular telephone from the defendants. The class members can
receive a taxi voucher worth $12, which may be redeemed as taxi
fare with Orange Cab. Any class member who submits a timely and
valid claim will also receive a $48 payment from the defendants.
Plaintiffs' attorneys are receiving approximately $1.1 million
in fees, and the named plaintiff will be awarded $7,500 as an
A final fairness hearing is scheduled for December 7, 2017.
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Litigation involving claims of unfair or deceptive business practices under Chapter 93A of the Massachusetts General Laws is constantly evolving, and these claims remain a favourite for the plaintiffs' bar...
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