October 2, 2022
Federal Judge Rules Robocall Firm must Pay nearly $1 Billion in Damages

Robocall Company Hit with $1 Billion Federal Judgment for Placing over 1.8 Million Illegal Calls

A federal judge in Portland, Oregon upheld almost $1 billion in damages awarded in a class-action lawsuit over unlawful telemarketing…

Telemarketing defendant ViSalus placed nearly 2 million pre-recorded solicitation calls across the country. The marketing entity offered deals on weight-loss products, dietary supplements, and energy drinks. Unfortunately, the majority of those automated calls were illegal, violating the Telephone Consumer Protection Act or TCPA. Due to this unlawful practice, a federal judge has upheld almost $1 billion in damages.

Federal Judge Rules Robocall Firm must Pay nearly $1 Billion in Damages

Plaintiff Lori Wakefield, previously a promoter for the defendant company, filed the suit, alleging the firm’s pre-recorded calls were illegal. Each violation equals a $500 penalty and a jury in April 2019 came to the conclusion the company made 1,850,436 unlawful robocalls. That amounts to approximately $925 million in damages, according to U.S. District Judge Michael H. Simon.

The defendant’s attorney, Benjamin G. Shatz, said the decision would result in a “death sentence for ViSalus. Shatz urged the court to reduce the damage award to under a dollar per call but the judge dismissed the argument:

“ViSalus’s understanding of the limitations on damages imposed by due process implies that a constitutional penalty for a single violation becomes unconstitutional if the defendant commits the violation enough times.”

Ashley Lipman

Ashley Lipman is a super-connector with Outreachmama who helps businesses find their audience online through outreach, partnerships, and networking.

View all posts by Ashley Lipman →