Uber reaches $20 million settlement in class-action lawsuit over text messages
By Nereida Moreno Contact Reporter
Chicago Tribune
Uber Technologies is expected to pay $20 million to settle a class-action lawsuit alleging the rideshare company violated federal law by sending out unsolicited text messages.
The settlement requires final approval by an Illinois District Court judge who is scheduled to hear the case Jan. 23. The court also will consider whether to approve the request for attorneys’ fees of up to $6.7 million plus costs and expenses, and awards for the six plaintiffs of $10,000 each.
Cook County resident Maria Vergara filed the lawsuit in federal court on Aug. 7, 2015, according to court documents. The lawsuit claims Vergara received at least eight unsolicited text messages with different confirmation numbers to register for the rideshare service, even though she had never used Uber and had never tried to download the Uber app.
The case was brought as a class action alleging that Uber violated the Telephone Consumer Protection Act by sending automated text messages without consent, causing “aggravation and invasion of privacy.”
That practice can cost those receiving the texts money, because many phone service providers charge for receiving “wireless spam,” according to the lawsuit.
Sandeep Pal, Jennifer Reilly, Justin Bartolet, James Lathrop and Jonathan Grindell also are named as plaintiffs in the suit. They are “incredibly pleased with the settlement and think that it’s an excellent result,” according to Paul Geske, attorney with the Chicago-based law firm McGuire Law.
Uber denies the allegations but has agreed to alter its texting practices. The company’s lawyers did not respond to requests for comment.
The amount of the payments will depend on the number of people who submit valid claims. Class members must submit a claim form by Dec. 15 to receive a payment or to exclude themselves from the settlement. Claims may be filed online by mail. Visit www.UberTCPASettlement.com or call 800-330-1683 for more information.
Twitter @nereidamorenos