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By Claire Dickey
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UnitedHealthcare has agreed to settle a class action lawsuit for $2.5 million, affecting approximately 12,014 individuals.
This settlement aims to resolve allegations that the healthcare giant made unauthorized marketing calls in violation of the Telephone Consumer Protection Act (TCPA).
Newsweek reached out to UnitedHealth Group for comment on Monday.
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Why It Matters
The recent settlement with UnitedHealthcare casts a spotlight on the critical issue of consumer privacy and the obligation of businesses to comply with laws like the TCPA, which governs telemarketing activities. The case serves as a reminder of the potential consequences for corporations that fail to adhere to these regulations.
The health insurance company has recently been in the news for other reasons. Most notably, UnitedHealthcare CEO Brian Thompson was shot and killed in New York City this past December by alleged gunman Luigi Mangione, underlining a turbulent period for the corporation amidst ongoing legal proceedings.
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What To Know
The lawsuit, Samson v. UnitedHealthCare Services, Inc., originated from claims that UnitedHealthcare persistently called individuals with marketing messages without their consent between 2015 and 2019. Notably, some recipients had explicitly requested removal from the call list, only to continue receiving calls.
The settlement, preliminarily approved by a Washington federal judge on January 16, 2025, suggests each class member could receive over $90. The final amount will depend on the number of claims submitted.
The lead plaintiff, Frantz Samson, who initiated the lawsuit after repeated calls on a wrong number, is proposed to receive a $20,000 service award. Legal fees for the attorneys are set to claim one-third of the settlement fund, amounting to approximately $833,333, per Top Class Actions.
"This settlement is significant for a number of reasons," Christopher E. Roberts, class action attorney at Butsch Roberts & Associates LLC, told Newsweek. "...[It] highlights that even huge companies like UnitedHealthcare can place unwanted telemarketing calls and that consumers have recourse to hold companies that place these calls accountable."
Roberts continued by emphasizing the necessity for businesses to establish and maintain correct telemarketing procedures, including consent from the recipient and accurate contact information. Doing so can prevent miscommunication and unauthorized contact, safeguarding consumer privacy.
What People Are Saying
The class counsel said, as reported by Top Class Actions: "These potential payments exceed those made in other TCPA settlements that have been approved as fair, adequate and reasonable... The settlement provides an excellent recovery for claimants given that, at trial, class members could obtain at most $500 to $1,500 per call."
Christopher E. Roberts, class action attorney at Butsch Roberts & Associates LLC, told Newsweek: "The Telephone Consumer Protection Act (TCPA) is a little known tool that consumers can use to fight back against companies that place unwanted telemarketing calls (including both live calls and robocalls) and/or texts to their phones. The penalty is $500 for each call or text and can be up to $1,500 if the violation of the law is determined to be willful.
Consumers should register their phone numbers on the National Do-Not-Call List. However, sometimes registering on the National Do-Not-Call List does not stop many companies from placing these calls or texts[...]."
Margaret M. Quinlan, director of the Health and Medical Humanities Program in Interdisciplinary Studies at the University of North Carolina at Charlotte, told Newsweek: "... From my research on vulnerable populations within the US medical establishment (e.g., patients going through fertility treatment and parents dealing with health crises), unauthorized calls or unsolicited messages can lead to distrust of healthcare providers and the healthcare system, furthering the power imbalances that already happen in healthcare where people hope that their providers have their best interest in mind rather than that of corporate interests."
What Happens Next
The final approval hearing for the settlement is currently scheduled for June 20, 2025. This hearing will determine whether the settlement is fair and adequate for the class members.
If approved, it will mark the conclusion of a legal battle that has highlighted significant concerns about privacy and consumer rights in the digital age.
Update 1/28/25 10:57 a.m. ET: This story has been updated with additional context and comment from Roberts.
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