The U.S. Supreme Court has agreed to hear a case that may allow companies sued under the Telephone Consumer Protection Act (TCPA) to sidestep costly litigation.
The Court will decide in Campbell-Ewald Co. v. Gomez whether a putative class action becomes moot if the defendant offers settlements to individual plaintiffs.
The Court provided some clues on how it will rule in Genesis HealthCare v. Symczyk, a previous case on settlement actions under the Fair Labor Standards Act.
“The reasoning and analysis in Genesis HealthCare could be an indicator that the Supreme Court is receptive to the argument being presented by the cert petition,” said Kristy McAlister Brown, partner in Alston & Bird’s Technology & Telecommunications Litigation Team.
As Brown noted, however, Justice Elena Kagan wrote a scathing dissent in Genesis HealthCare, and the plaintiff in the Campbell-Ewald case is using it to claim “pickoff” settlements are not permissible.