Farmers Insurance settles TCPA SMS class action for $2.87MM, setting precedent for agent-originated litigation
Original: PRECEDENT SET: Farmers Decides to Pay $2.87MM To Settle TCPA Suit Arising from Allegedly Illegal SMS from Todd Henderson Insurance Agency– And Insurers Can All Expect A Lot More Lawsuits Now
Short summary
Farmers Insurance settled a DNC TCPA class action for $2.87MM over SMS sent by a single agent (Todd Henderson Insurance Agency), paying $359 per class member for 8,039 recipients. The author argues this settlement is excessive for a weak DNC SMS claim and creates a dangerous precedent inviting more lawsuits against insurers for agent-initiated texts. The article warns major insurers and brokerages to be strategic about settlements to avoid ending up on a perpetual TCPA class action treadmill.
- •Farmers paid $2.87MM to settle TCPA SMS class action from one agent's texts
- •Settlement creates precedent that insurers will pay for agent compliance failures
- •Author warns this invites more lawsuits and urges smarter settlement decisions
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