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GoDaddy set to pay millions to settle robocalling class action
Kevin Murphy,
November 5, 2020, 15:59:22 (UTC),
Domain Registrars
GoDaddy is due to pay a bunch of class action lawyers millions of dollars to settle a lawsuit alleging historical illegal robocalling practices, while giving affected customers a lousy $35 apiece.
The lawyers have reportedly filed for final approval of a settlement (pdf) agreed to in May that put GoDaddy on the hook for up to $35 million.
The Alabama suit, Drazen v Goddady, alleged that the registrar between 2014 and 2016 broke the US Telephone Consumer Protection Act by using software to automatically call and text customers with upsell offers without their permission.
GoDaddy denied, and continues to deny, any allegations of wrongdoing.
Still, it’s decided to pay the lawyers to go away, to avoid costly ongoing litigation.
While the payout is capped at $35 million, in reality the company will be paying substantially less.
Affected US-based customers who filed a claims form before October 7 will either receive a check for $35 cash or store credit, redeemable within one year, for $150.
Reportedly, only 24,000 of the 1.46 million potential class members filed their claims by the deadline, so GoDaddy only stands to pay out $840,000 cash, $3.6 million in store credit, or some value between the two.
The class action plaintiff’s lawyers, on the other hand, stand to get up to 30% of the $35 million settlement, or $10.5 million.
The representative plaintiffs who put their names to the complaint get $5,000 each for their trouble.
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