Cynosure Settles Fax TCPA Class Action for $16 Million

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January 30, 2017

fax-tcpaOn Thursday, the parties in ARcare, Inc. v. Cynosure, Inc., an action concerning the Telephone Consumer Protection Act (“TCPA”), filed a motion for preliminary approval of a class action settlement of plaintiff’s fax TCPA claims.  Specifically, the named plaintiff alleged that it received multiple unsolicited fax advertisements from the defendant which were sent without the prior express written consent of the plaintiff.  In addition, the plaintiff alleged that the defendant’s unsolicited fax advertisements were sent without the requisite opt-out notice mandated by the TCPA.  The parties’ settlement, according to the recitals contained in the settlement agreement and release, was spurred in part by the United States Court of Appeals for the D.C. Circuit’s review of the Federal Communications Commission rule requiring opt-out notices on fax advertisements.

What are the Terms of the Fax TCPA Class Action Settlement?

According to the parties’ motion for preliminary approval of the fax TCPA settlement, plaintiff’s counsel contends that Cynosure, Inc. (“Cynosure”) attempted to send its fax advertisements to approximately 76,567 different fax numbers between July 27, 2012 and August 2, 2016.  Additionally, plaintiff’s counsel estimated that upwards of 800,000 total fax transmittals appear to have been attempted in that time period.

Under the proposed settlement agreement, Cynosure will create a settlement fund of up to $16 million.  Class notification will be sent on or about February 14, 2017, with April 17, 2017 being the deadline for proposed class members to file objections.  The Court has yet to schedule a final settlement approval hearing.

Protect Against a Fax TCPA Lawsuit

We recently blogged a short informational piece about TCPA compliance for fax marketing.  The continued rise in fax TCPA litigation, and the substantial costs of both defending and resolving such lawsuits, underscores the importance of consulting with competent counsel before engaging in any fax marketing campaign.

If you are interested in learning more about this topic, please visit the Telemarketing Law practice area of our website.  If you have been served with process concerning your telemarketing practices in general, please e-mail us at info@kleinmoynihan.com or call us at (212) 246-0900.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney.  Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.

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David O. Klein

David O. Klein

David Klein is one of the most recognized attorneys in the telemarketing, technology, Internet marketing, sweepstakes and telecommunications fields. Skilled at counseling clients on a broad range of technology-related matters, David Klein has substantial experience in negotiating and drafting complex licensing, marketing and Internet agreements.

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