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$14.5M TCPA Class Action Settlement Agreed by American Eagle

Santa Clara, CA: A $14.5 million settlement has been reached in a class action lawsuit pending against American Eagle Outfitters alleging the clothing retailer sent unsolicited text message advertisements, in violation of the Telephone Consumer protection Act (TCPA).

Should the settlement be approved, a non-revisionary fund will be established by the defendants, American Eagle and its parent company AEO Management Co., from which each of the approximately 618,289 members of the proposed settlement class will be compensated.

Each class member who submits a "simple claim form" will receive a cash payment, which is estimated to be between $142 and $285, according to the terms of the agreement.

The class action involves separate proposed class actions filed by American Eagle customers in New York, Florida and Illinois federal court. The suits claimed that American Eagle violated the TCPA by sending texts to the cell phones of the plaintiffs and at least 600,000 other unique cell phones without having prior written consent to do so or after the recipient had unsubscribed from such communications.

A third defendant named in the suit, telemarketing vendor Experian Marketing Solutions Inc, initially released from the suit, is facing a third-party complaint filed by American Eagle which claims that the marketing arm of the credit reporting company should indemnify the clothing retailer because it had a duty to obey the TCPA through its contract to provide text message advertising services.

The settlement will also pay incentive awards to the four named plaintiffs of up to $10,000 each, according to the parties' agreement, which also seeks conditional certification of the proposed settlement class.

If approved, the settlement will end two years of litigation. The case is Christina Melito et al. v. American Eagle Outfitters Inc. et al., case number 1:14-cv-02440, in the U.S. District Court for the Southern District of New York.

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Published on Dec-26-16


Posted by

How do I fill out the claim form? I received numerous calls from these people!

Posted by

I bought a few items around that time

Posted by

Definately a nuisance getting unwanted text messages.

Posted by

The American Eagle Outfitters should be delt with, based on their clothing retailer sending unsolicited text message advertisment.


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