American Eagle To Pay $14.5M To End Spam Text Dispute

Law360, New York (December 21, 2016, 10:35 PM EST) -- American Eagle Outfitters has agreed to shell out $14.5 million to settle a proposed class action accusing the clothing company of violating the Telephone Consumer Protection Act by blasting consumers with unsolicited text-message advertisements, according to documents filed in New York federal court Wednesday.

Under the terms of the agreement, which were detailed in an unopposed motion filed by the plaintiffs for preliminary approval of the pact, American Eagle and its parent company AEO Management Co. will establish a non-reversionary fund to compensate the approximately 618,289 members of the proposed settlement class who claim to have received spam texts from the...

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