Example:

Maria called Allstate from her cell phone to discuss an insurance claim. The Allstate rep did not tell Maria the call was being recorded. Maria later learned Allstate may have recorded the call without her knowledge or permission, potentially violating CIPA. She decided to file a class action on behalf of herself and other Californians who had cell calls secretly recorded by Allstate.

Key Takeaway:

California has strict privacy laws against recording calls without consent. Companies can face major liability if they record cell calls without proper disclosures and permission. Even if the recording is not used improperly, the mere act of recording a confidential communication from a cell phone without consent violates CIPA.

Legal Analysis:

This lawsuit relied on a specific provision of CIPA, Section 632.7(a). To prove a violation, the plaintiff needed to show Allstate (1) intentionally (2) recorded a communication (3) made from a cellular phone (4) without the consent of all parties. The statute imposes liability regardless of whether the call contained confidential information – the key is it came from a cell phone and consent was lacking. CIPA authorizes statutory damages of $5000 per call or 3x actual damages to deter privacy invasions.

Example:

Sarah got an email notice stating she may be entitled to payment from a class action settlement with Allstate. The notice said the class includes anyone in California whose cell phone conversation was recorded by Allstate without their consent between February 1, 2022 and December 31, 2022. Sarah remembered calling Allstate from her cell last summer to discuss her car insurance policy. She wasn’t told that call may be recorded, so she appears to meet the class definition criteria.

What to Do:

Carefully review the settlement class definition in the notice you received. If you believe you meet the qualifying criteria and did not receive a notice, contact the Settlement Administrator to inquire if you are on the class list. Only submit a claim if you are confident you actually qualify. Filing a false claim could constitute fraud. When in doubt, consult with an attorney about your eligibility.

FAQs:

• • What if I’m not sure Allstate recorded my particular call? If Allstate’s records show you are a class member, there is likely evidence your call was recorded without proper notice. The settlement avoids the need to prove recording on an individual basis.
  • Do I qualify if I called Allstate on a landline phone? No, CIPA Section 632.7 specifically requires the recording be of a communication made from a cellular or cordless telephone.
  • What if I think Allstate recorded my cell call in 2021 or 2023? The class period is limited to calls made between 2/1/22 and 12/31/22. Calls outside that timeframe are not included in this settlement.
  • How do I exclude myself from the settlement? Submit a written request to opt out to the Settlement Administrator, postmarked by the deadline stated in the notice.

Example:

After confirming he’s a settlement class member, Joe visited the settlement website and clicked the “Submit a Claim” button. It took him to an online claim form asking for his name, email, address, and the cell phone number Allstate called. Joe entered all the requested information, digitally signed the attestation that the info is true, and hit “Submit” well before the [deadline date]. A few weeks later, he got an email from the Settlement Administrator confirming his claim was received and approved.

Filing Tips:

• • Provide complete and accurate information, as it will be verified against Allstate’s records. Discrepancies could result in claim denial.
  • Submit your claim as soon as possible. Don’t wait until the last minute and risk missing the deadline.
  • If you file online, make sure you get a confirmation message and email. If filing by mail, consider using certified mail for tracking.
  • Keep a copy of your completed Claim Form and any proof of mailing until you receive your payment.
  • Be patient waiting for your settlement check to arrive. It may take several months after final approval. Contact the Settlement Administrator if you have questions about timing.

FAQs:

• • What if I miss the claim filing deadline? Late claims may be rejected. Only claims submitted by the deadline will be considered. The court may allow some late claims for good cause, but there’s no guarantee.
  • How will I know if my claim is approved? The Settlement Administrator will notify you by email or mail once your claim is processed. You can also check the status on the settlement website.
  • What happens if my claim is denied? If your claim is rejected, you’ll receive a denial notice explaining why. You may be able to correct deficiencies and resubmit before the deadline. If you believe the denial is in error, contact the administrator or your attorney.
  • Will I have to pay taxes on my settlement payment? Settlement payments may be considered taxable income. Consult a tax professional for advice on your specific situation.

Factors Impacting Payment Amounts:

• • The more class members who file valid claims, the lower the individual payments, since the $3.3 million is divided among all claimants.
  • If the court reduces the percentage of attorneys’ fees or named plaintiff award, more money will be available for class payouts.
  • Actual administration costs will impact the remaining fund available – efficient claims processing can maximize class payments.
  • If many class members don’t cash their checks, those funds may be re-distributed to other claimants, increasing the per-person amounts.

• • Read the detailed notice and settlement agreement on the website carefully, so you understand your rights and options.
    
  • If you want to make a claim, accurately complete the Claim Form online or by mail before the October 30, 2024 deadline.
    
  • If you want to opt out, object, or attend the final approval hearing, follow the specific instructions and deadlines for each.
    
  • Consult an attorney if you have questions about your specific legal rights and the impact of staying in the settlement class.
    
  • Keep your contact information updated with the Settlement Administrator so you receive further notifications and payment.
    

Questions: Claims & Payouts

• • 1. What is the total amount Allstate agreed to pay to settle this class action lawsuit?
    • A) $1 million
    • B) $3.3 million
    • C) $5 million
    • D) $10 million
  • 2. How do you make a claim for a share of the settlement funds?
    • A) File a Claim Form by the deadline
    • B) Do nothing – you’ll automatically get a payment
    • C) Contact the Settlement Administrator directly
    • D) Attend the Final Approval Hearing
  • 3. How much money might each claimant get from the settlement?
    • A) Exactly $1,000
    • B) A full refund of their Allstate premiums
    • C) An equal share of the fund, estimated at $20-$500
    • D) Nothing – Allstate keeps all the settlement funds
  • 4. What is the deadline to submit a Claim Form for payment?
    • A) October 30, 2023
    • B) December 31, 2024
    • C) October 30, 2024
    • D) There is no deadline
  • 5. What happens to any settlement funds that remain after initial payments to the class?
    • A) Allstate keeps the leftover money
    • B) The court gets the remaining funds
    • C) Class Counsel receives the balance
    • D) It will be re-distributed to claimants or donated to non-profit(s)

Answers: Claims & Payouts

• • 1. B) Allstate agreed to pay a total of $3.3 million into a settlement fund to resolve claims in this class action lawsuit.
  • 2. A) To get a payment, you must file a valid Claim Form by the deadline stated in the class notice.
  • 3. C) The amount each claimant receives will be an equal share of the settlement fund after deducting fees/costs, estimated at $20-$500 but could vary.
  • 4. C) The deadline to submit Claim Forms is October 30, 2024 – file online or postmark by then to be eligible for payment.
  • 5. D) If any funds remain after the initial distribution (e.g. uncashed checks), it will be re-distributed to claimants or donated to a consumer advocacy non-profit.

Questions: Settlement Terms & Process

• • 1. What claims does the Allstate settlement resolve?
    • A) Auto accident injury claims
    • B) Improper insurance rate hike claims
    • C) Robocall/spam text claims
    • D) Improper call recording claims
  • 2. How do you exclude yourself from the Allstate settlement?
    • A) Do nothing – if you don’t file a claim, you’re excluded
    • B) File an opt-out request by the deadline
    • C) Call the Settlement Administrator to be removed
    • D) Objecting to the settlement excludes you
  • 3. If you disagree with the settlement terms, how can you tell the court?
    • A) File a Claim Form asking for changes
    • B) Do nothing – the court will know you disagree
    • C) File a written objection with the court
    • D) Opt out of the settlement completely
  • 4. When will the court decide whether to give final approval to the Allstate settlement?
    • A) June 21, 2024
    • B) October 30, 2024
    • C) January 10, 2025
    • D) The court has already approved the settlement
  • 5. What happens if you do nothing in response to the Allstate settlement notice?
    • A) You’re included in the settlement and waive claims
    • B) You’re excluded and keep your right to sue separately
    • C) You’ll be sent a check automatically
    • D) The court will contact you for more info

Answers: Settlement Terms & Process

• • 1. D) This settlement resolves claims that Allstate improperly recorded cell phone calls in violation of California privacy law (CIPA).
  • 2. B) To exclude yourself, you must affirmatively opt out by sending a written request to the Settlement Administrator, postmarked by the deadline.
  • 3. C) If you object to the settlement terms, you must file a written objection with the court explaining your position by the objection deadline.
  • 4. C) The court has scheduled a Final Approval Hearing for January 10, 2025 to consider whether the settlement is fair, reasonable and adequate.
  • 5. A) If you do nothing, you’ll remain in the settlement class, waive your claims, and won’t get any money – you must file a claim to get a payment.