The lawsuit, which was filed in 2012, was finally settled by a U.S. district judge for $8.7 million, reports the Chicago Tribune. About eight million potential members are involved in the case and will receive either a cash reward or a boost on their credit card balances.
The plaintiffs at the forefront of the case pointed out that in 2007, the Federal Communications Commission cited Discover for making “prerecorded telephone calls to consumers who had not expressly invited or authorized the calls.”
The FCC warned the company that it would face fines of up to $11,000 for each violation or each day, the lawsuit said. But one of the plaintiffs claimed that after he got a Discover card in January 2011, he started getting calls on his cell phone less than a year later, in violation of the Telephone Consumer Protection Act.
“The court concludes that the settlement agreement is fair, reasonable and adequate,” the judge wrote, adding in an extra award of $2.2 million for attorneys’ fees and costs and $2,000 for each named plaintiff.
The law firm that brought the case seems content with the outcome — after all, those phones aren’t ringing now (we hope).
“For many, the primary goal was to put an end to these phone calls,” the law firm said.
Discover settles ‘auto-dial’ case for $8.7 million [Chicago Tribune]