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ARTICLE · 31 JULY 2024

TCPA Tracker For April - June 2024

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

Kelley Drye & Warren LLP

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The United States Court of Appeals for the Eleventh Circuit dismissed a $35 million settlement of a class action alleging that GoDaddy​.com violated the TCPA...

United StatesMedia, Telecoms, IT, Entertainment

Cases of Note

Eleventh Circuit Dismisses $35M Settlement Due to Class Action Attorneys' Self-Dealing

The United States Court of Appeals for the Eleventh Circuit dismissed a $35 million settlement of a class action alleging that GoDaddy.com violated the TCPA when sending unsolicited texts because class counsel engaged in self-dealing, and the lower court abused its discretion in approving the settlement.

Under the settlement agreement, according to the Court, the named plaintiffs would receive “preferential treatment” and class counsel would be guaranteed attorney's fees of up to $10.5 million. Their fees would not be reduced even if the class members' claims totaled more than the $35 million settlement (less the fees, administration costs, court costs, and service fees). The agreement included a release provision that released GoDaddy and its connected entities, which bound about 98.1% of the class, effectively 1.26 million members. The Court took issue with

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