Analysis

Supplement Co.'s $925M Loss A Wake-Up Call On Robocalls

Law360 (September 4, 2020, 1:50 PM EDT) -- A federal judge's refusal to cut down a $925 million award against health supplement maker ViSalus, which placed nearly 2 million unsolicited robocalls, should embolden plaintiffs to continue flooding courts with such claims, and may make companies reluctant to take their chances at trial.

While most disputes under the Telephone Consumer Protection Act are either settled or dismissed before they reach the judgment phase, defendants have kept in their "back pocket" the contention that staggering statutory damages of between $500 and $1,500 per unwanted call or text are unconstitutionally excessive, viewing the assertion as "a 'go-to' argument if a case ever spun...

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