Financial Institution Reaches Settlement in Call Recording Class Action – Privacy Protection
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A financial institution and its supplier recently settled $50 million in a class action lawsuit for violating the call recording provision of the California Invasion of Privacy Act (“CIPA”). The settlement is nearly three times larger than the largest previous settlement under the CIPA, which provides for damages of $5,000 per violation.
The case, Sat Narayan d/b/a Express Hauling et al c. Fifth Third Bank et al, arose from the alleged recording of telemarketing calls without the notice and consent of the recipients of the call. The plaintiffs, a proposed class of small businesses, received calls from telemarketers who the plaintiffs said operated as agents for the defendants. These calls were allegedly made for the purpose of selling credit and debit card payment processing services and equipment offered by the defendants. The complainants alleged that these calls were then recorded without their knowledge or consent.
Defendants collectively filed multiple motions to dismiss and motions for judgment on pleadings, which were dismissed by the court between 2018 and 2020. Plaintiffs have now filed a motion for preliminary settlement approval in the District Court for the District northern Illinois. .
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