A financial institution and its vendor recently reached a $50 million settlement in a class action lawsuit for violating the call recording provision of the California Invasion of Privacy Act ("CIPA"). The settlement is nearly three times the size of the largest previous settlement under CIPA, which provides for damages of $5,000 per violation.
The case, Sat Narayan d/b/a Express Hauling et al v. Fifth Third Bank et al, arose from the alleged recording of telemarketing calls without the notice and consent of the call recipients. The plaintiffs, a proposed class of small businesses, received calls from telemarketers who plaintiffs argued operated as agents of the defendants. These calls were alleged to have been made with the goal of selling credit and debit card payment processing services and hardware offered by the defendants. Plaintiffs alleged that these calls were then recorded without their knowledge or consent.
The defendants collectively filed multiple motions to dismiss and motions for judgment on the pleadings, which were denied by the court between 2018 and 2020. The plaintiffs have now filed a motion for preliminary approval of the settlement in the District Court for the Northern District of Illinois.
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