$5.5 Million TCPA Settlement With Debt Collector Finalized

Attorneys are due to collect $1.8 million in fees as part of a $5.5 million class-action settlement that was finalized last week against Convergent Outsourcing.

The named plaintiffs in the class received $5,000 each as part of the settlement. The other 503,644 estimated members of the class will split the remaining $3.6 million, which works out to $7.14 each, if all members of the class file a claim. If fewer members of the class file claims, then the amount per claim will increase proportionally. The final order approving the settlement was signed and certified last week. Plaintiffs’ attorneys estimated that members of the class who file claims will likely receive between $125 and $150 each.

The case was aggregated and consolidated from at least 44 different cases filed across the country. The initial consolidation of cases began more than three years ago.

Plaintiffs could become part of the if they were: Individuals were contacted on their mobile phones by Convergent and indicated that the call was placed to a wrong number, requested Convergent not to call the number, called after providing Convergent a notice of bankruptcy, called after being told that an attorney was now representing the individual, or had been contacted on a mobile phone number provided by a skiptracer after October 26, 2008.

As part of the settlement, Convergent “expressly disclaims and denies any wrongdoing or liability, whosoever,” and denied “each and every material factual allegation and all claims asserted against it.”

On the other side, the plaintiffs argued, “While Plaintiffs believe that the facts and law are squarely on their side, success is far from certain and relief to the Settlement Classes absent this settlement is not guaranteed. Thus, resolution of this case without settlement would be a complex and expensive endeavor likely lasting years, favoring approval of the settlement.”

The settlement was originally agreed to in May, but was finalized last week. Any remaining funds that do not get distributed to members of the class will be donated to the National Consumer Law Center.

No objections to the settlement have been filed, according to the order approving the final terms of the agreement.