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Sirius XM Settles for $35M to End TCPA Claims

Many consumers would be thrilled to find they get a free trial subscription for Sirius XM's ("Sirius") satellite radio with their car purchase. But once the free trial is over, many of those same customers who did not continue their subscription become less than pleased to receive phone calls from Sirius encouraging them to re-subscribe. At least, that is what happened to Francis W. Hooker Jr. ("Hooker"), who filed a class action on behalf of himself and others similarly-situated against Sirius for allegedly violating the Telephone Consumer Protection Act ("TCPA").

The TCPA was enacted to protect consumers from aggressive telemarketers. In this instance, the TCPA applied to Sirius's use of autodialing systems to make sales calls.

In 2013, Sirius offered Hooker $10,521 to settle his claims -- a settlement that was more than the $10,500 maximum allowed for individual recovery under the TCPA. However, Hooker refused the deal to seek resolution for the entire proposed class in the United States who were trial recipients of the satellite radio service and who were subject to one or more calls made on behalf of Sirius.

Consequently, Sirius agreed to pay $35 million into a common fund from which members of the proposed class can either draw a payment or receive three months of Sirius Select Service at no charge. Furthermore, Sirius promised to enter into agreements with certain telemarketing call center vendors to make modifications to the way they manage their system.

The legal team at SFMS has significant experience litigating class action matters. If you have any questions regarding this subject or this posting, please contact Nick Lussier (nlussier@sfmslaw.com) or Chiharu Sekino (csekino@sfmslaw.com). We can also be reached toll-free at (866) 540-5505.

Shepherd, Finkelman, Miller & Shah, LLP is a law firm with offices in California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Wisconsin. SFMS is an active member of Integrated Advisory Group (www.iaginternational.org), which provides us with the ability to provide our clients with access to excellent legal and accounting resources throughout the globe. For more information about our firm, please visit us at www.sfmslaw.com.

SOURCES

Lee, Suevon. "Sirius XM Agrees To Pay $35M To End Telemarketing Rows." Law 360. Last modified on June 30, 2016.

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