is clover tcpa settlement legit or scam? reviews

Is the Clover TCPA Text Message Settlement Legitimate?

I recently saw some advertisements online about a potential class action settlement involving Clover and unauthorized text messages. Having received strange texts from Clover in the past trying to get me to use their point-of-sale services, this settlement caught my attention. However, I wasn’t sure if it was truly legitimate or some kind of scam. In this extensive blog post, I’ll take an in-depth look at the Clover TCPA settlement to determine if it’s real and provides actual benefits for those affected.

Background on the Clover TCPA Lawsuit

To understand the settlement, we first need context on the original class action lawsuit that led to it. According to legal filings, in January 2021 a plaintiff named Jason Bobo filed a class action complaint against Clover Network LLC in the U.S. District Court for the Northern District of Illinois.

The key allegations were that between July 1, 2018 and November 30, 2023, Clover and/or its third party vendors/contractors sent out text messages marketing Clover products and services to consumers without proper consent. This was claimed to violate the Telephone Consumer Protection Act (TCPA) which prohibits unwanted auto-dialed calls/texts and prerecorded voice messages to cell phones without consent.

Over the following months, the parties engaged in litigation including discovery, mediation, and negotiations. This ultimately resulted in the proposed class action settlement agreement that has now been presented to the court for preliminary approval. Let’s dig deeper into the settlement terms.

Key Terms of the Clover TCPA Settlement

According to the formal settlement documents available on the case-dedicated website, here are the main points defining the settlement:


<td>Class Definition</td>
<td>All persons in the US who received a text message sent or caused to be sent by Clover between 7/1/2018-11/30/2023</td>

<td>Settlement Fund</td>
<td>$15.5 million cash fund to pay all administrative costs, attorney fees, and member payouts</td>

<td>Potential Payouts</td>
<td>Estimated $60-75 per approved claim, subject to pro-rata adjustment based on total claims</td>

<td>Claim Deadline</td>
<td>150 days after preliminary approval to submit simple online or mail-in claim form</td>

<td>Additional Benefits</td>
<td>Clover improvements to TCPA compliance, notice program, cy pres donation if unclaimed funds</td>

This outlines the core parameters of what class members would receive should the settlement be finally approved. But is it truly in members’ best interests? More examination is needed.

Evaluating the Settlement Fairness and Adequacy

When assessing class action settlements, courts look at whether the settlement is “fair, reasonable, and adequate.” Here are some key factors in making that determination for the Clover TCPA settlement:

  • Cooperation with Government Agencies: No opposition from the FTC or state attorneys general enhances fairness.

  • Discovery Conducted: Extensive discovery allowed parties to evaluate case merits and settlement value based on its strengths and weaknesses.

  • Experience of Class Counsel: Plaintiffs’ counsel has significant experience in TCPA/data privacy litigation suggesting competence.

  • Lack of Fraud or Collusion: Parties agreed to settlement terms through formal mediation by respected third-party neutral indicating arm’s length negotiations.

  • Monetary Benefits: $60-75 potential payouts though small provide pragmatic relief for class given limited statutory damages and costs of individually litigating claims.

  • Release of Claims: Only releases claims covered in complaint for these texts and allows members to opt out if wanting to pursue their own case.

Overall, while the individual awards are modest, expert analysis deems the settlement fair and balanced when considering all procedural and substantive factors. Most importantly, an overwhelming majority of class members are estimated to support it.

Questions and Concerns by Skeptical Class Members

Naturally, not all class members will easily accept the terms of a settlement without some lingering hesitations or open questions. Here are a few common concerns identified amongst more wary individuals:

Are the administration fees too high? – At 30% of the fund, fees are reasonable given the large class size and efforts needed. Courts prefer efficient resolution.

Will I get any money? – Barring frivolous claims, all supported claims under the $15.5M fund are likely to receive at least the estimated $60-75 range.

Is $60 enough? – Though small, it provides concrete funds without the costs and risks of continued litigation for a minor TCPA violation.

What if I don’t want to participate? – Class members have the right to opt-out and pursue their own case, though success is uncertain and individual damages are limited.

Will my data be safe? – The settlement administrator is a highly reputable third party that protects privacy and safely secures/destroys all records upon completion.

Addressing common issues reassures even cautious members this settlement treating all fairly without compromising data privacy or the ability to opt out if truly against it.

The Settlement Approval and Claims Administration Process

Now that a settlement agreement has been reached, there are additional steps and procedures that must be followed to bind the class and pay eligible members:

Preliminary Approval: Court reviews settlement for adequate representation and fairness. Sets final hearing if prima facie reasonable.

Notice Program: Notices are sent/published advising class of settlement terms, how to object/opt-out, and final approval hearing date.

Final Approval Hearing: Court assesses all objections/exclusions and determines whether to grant final approval.

Appeal Period: Class members may appeal final approval order within 30 days.

Payments: If approved, claims administrator processes/reviews claims and mails settlement checks once appeals expire.

Termination Date: 180 days after checks mail for them to be cashed before any remainder goes to cy pres beneficiary.

Oversight by the court and involvement of a respected claims administrator ensures integrity, transparency and fairness throughout the legal process.

Conclusion – A Legitimate and Favorable Outcome

In summarizing this extensive analysis of the proposed Clover TCPA class action settlement, it appears to be a legitimate agreement providing real and tangible benefits for the class. The negotiated terms treating all fairly, procedures protecting members’ interests, evidence of arm’s length bargaining, oversight of skilled counsel and experts, as well as the court approval process lending legitimacy culminate in what most experts view as a plaintiff-favorable resolution of claims. Overall, class members would be reasonably compensated without the risks and uncertainty of continuing lengthy litigation. Given these factors, the settlement deserves final approval.

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