TCPA Class Actions: What Defendants Should Know About Settlement
A TCPA class action multiplies per-call damages by every person a campaign reached, which is why these cases settle more often than they go to trial. Any class settlement needs court approval under Federal Rule of Civil Procedure 23, after notice to class members and a fairness hearing. Defendants have real bargaining power along the way: challenges to certification, limits on aggregate damages, and the shape of the release. A company facing a class claim should plan the settlement structure as early as it plans the defense.
Why TCPA claims become class actions
The TCPA sets statutory damages per violation, and the Ninth Circuit summarized the result in Wakefield v. ViSalus: “Congress thus set a floor of statutory damages at $500 for each violation of the TCPA but no ceiling for cumulative damages, in a class action or otherwise.” A single campaign sent to a large list can produce theoretical exposure far beyond any individual case.
That math has limits. In the same case, the Ninth Circuit held that “aggregated statutory damages awards are, in certain extreme circumstances, subject to constitutional due process limitations,” per the opinion. The court cautioned that the argument succeeds “only very rarely,” but it gives defendants a principled basis to resist ruinous numbers.
Where defendants push back before settlement
Class definition and consent. TCPA classes often founder on consent. If people in the proposed class gave consent in different ways, at different times, or through different lead sources, individual questions can overwhelm common ones. Consent records organized by source are the basis for that argument.
Texts and Do Not Call claims. The Seventh Circuit held in Steidinger v. Blackstone Medical Services that texts aren’t telephone calls for Do Not Call claims, and the plaintiffs there had filed a consolidated class action. California courts aren’t bound by it, but a text-based Do Not Call class in California faces that argument from the start.
Arbitration and class waivers. Where class members are customers with arbitration agreements, the Supreme Court’s decision in AT&T Mobility LLC v. Concepcion supports individual arbitration. The Court held that “Requiring the availability of classwide arbitration interferes with fundamental attributes of arbitration and thus creates a scheme inconsistent with the FAA.”
How a class settlement gets approved
A class action “may be settled, voluntarily dismissed, or compromised only with the court’s approval,” under Rule 23(e). For a settlement that binds class members, the court may approve it “only after a hearing and only on finding that it is fair, reasonable, and adequate,” per Rule 23(e)(2).
Notice has to meet specific requirements. Under Rule 23(c)(2)(B), it “must clearly and concisely state in plain, easily understood language” the nature of the case and class members’ rights, including “that the court will exclude from the class any member who requests exclusion,” “the time and manner for requesting exclusion,” and “the binding effect of a class judgment on members.” Class members can also object under Rule 23(e)(5): “Any class member may object to the proposal if it requires court approval under this subdivision (e).”
The Federal Judicial Center’s guide for judges warns that “Notices can be discarded unopened by class members who think the notices are junk mail,” according to its checklist. Courts expect notice programs that actually reach people, and because the notice method influences how many class members file claims against a claims-made fund, notice design directly affects what a settlement costs.
Settlement terms that matter most to defendants
| Term | Why it matters | What to look for |
|---|---|---|
| Fund structure | Fixed common fund versus claims-made payments change real cost | Reversion terms and how unclaimed money is handled |
| Class definition | Defines who is bound by the release | Time period, phone numbers, and campaigns covered |
| Release scope | Determines what future claims are barred | Coverage of state-law claims and related affiliates and vendors |
| Opt-outs | Opt-outs keep individual claims alive | A walk-away right if opt-outs exceed a threshold |
| Practice changes | Often required as part of approval | Commitments the business can actually meet |
In my view, the release is where defendants most often give away value they didn’t need to. A settlement that resolves the TCPA claims but not parallel state-law claims over the same calls, or that covers the seller but not its texting vendor, invites a second lawsuit over the same campaign.
Preparing for class litigation
- Put a litigation hold on campaign-level data: lists, send logs, delivery reports, and the consent record behind every number, not just the named plaintiff’s.
- Pull opt-out and internal do-not-call data across the class period, organized by date and channel.
- Pull Registry scrub records and version dates for every campaign in the class period.
- Gather lead-source contracts, vendor agreements, insurance policies, and arbitration terms in customer agreements.
- Talk to a lawyer before discussing settlement with the plaintiff’s counsel or making changes to the campaigns named in the complaint.
Questions defendants ask about TCPA class actions
Can we settle with the named plaintiff alone?
Often, before a class is certified. But an individual settlement resolves only that person’s claims. The plaintiff’s lawyer may find another plaintiff to bring the same class claims over the same campaign. I’d weigh that risk, and the cost of a second round, before treating an individual deal as the end of the matter.
What happens to class members who opt out?
They aren’t bound by the settlement and keep their own claims over the same calls, so a large opt-out rate can mean a wave of follow-on individual suits brought by the same plaintiffs’ lawyers. Many settlements give the defendant a right to withdraw if opt-outs exceed an agreed number, which protects the value of the deal.
Does a class settlement admit liability?
No. Settlement agreements typically state that the defendant denies liability, and the court’s approval is a finding about the settlement’s fairness, not a finding that the defendant violated the TCPA. Still, practice-change commitments in a settlement can shape how regulators and future plaintiffs view the business.
How long does court approval take?
Usually months. The court reviews the proposal, notice goes out, class members get time to opt out or object, and the court holds a fairness hearing before final approval. Building that timeline into the settlement terms avoids surprises in payment and implementation dates.
Defending TCPA class actions
If your company faces a TCPA class action, class certification and settlement terms often matter more than the merits of any single call. Rosenberger + Kawabata represents businesses defending TCPA lawsuits and class actions through its business litigation practice, including claims involving class certification and class settlements. Contact Rosenberger + Kawabata online for a free and confidential consultation, or call (310) 894-6921.
Sources
The class action rules are Federal Rule of Civil Procedure 23. The Federal Judicial Center’s guidance is its Judges’ Class Action Notice and Claims Process Checklist (2010). The court decisions are Wakefield v. ViSalus, Inc., 51 F.4th 1109 (9th Cir. 2022); AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011); and Steidinger v. Blackstone Medical Services, No. 25-2398 (7th Cir. July 14, 2026).
This post is general information about the Telephone Consumer Protection Act and related laws as of August 15, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Courts and the FCC change the rules in this area often, and the outcome of any claim depends on its facts. Past results do not guarantee future outcomes.