[author: Eric Troutman]
Well the #biglaw surrender monkeys have struck again.
This time it is Zales– the diamond store– that has face-planted in a TCPA class action as a result of big law representation.
Not sure when folks are going to figure this out and stop using #biglaw to LOSE TCPA suits. But its good for my readership at least.
And once again the #biglaw client is getting a TERRIBLE deal here— sort of.
This is a really weird settlement and a terrible settlement for everyone.
So the class is defined as: “all persons throughout the United States (1) who did not provide their telephone number to Zale Delaware, Inc., (2) to whom Zale Delaware, Inc. delivered, or caused to be delivered, more than one text message within a 12-month period, promoting Zale Delaware, Inc. goods or services, (3) where the person’s residential or cellular telephone number had been registered with the National Do Not Call Registry for at least thirty days before Zale Delaware, Inc. delivered, or caused to be delivered, at least two text messages within the 12-month period.
For purposes of settlement the parties estimate the class consists of approximately 75,483 telephone numbers.
So let’s pause here.
In the first place it is not even clear that SMS messages are covered by the TCPA’s DNC rules anymore, so what the hell is Zales doing writing a $7.5MM check here (well actually it is more like $3MM [we’ll get to that] but still)?
The case settled in July (we’ll get to that too) which is after McKesson came out so they should have known the FCC’s SMS rules were subject to challenge– but they settled anyway.
NUTS.
Next, the class only has 75,483 people in it. That’s fairly small. But it is unclear to me how Zales figured out who in the class received a wrong number text.
We can let that go for now.
But so check this out.
Under the terms of the settlement every class member WHO MAKES A CLAIM gets $100.00. That’s how we get to the sum of $7,548,300 as the settlement figure.
$100.00 per class member is WAY WAY WAY above market for an SMS TCPA class action settlement and a reflection of the fact: i) #biglaw is dumb; and ii) the class was defined too narrowly.
But what #biglaw was probably focused on is that if a class member doesn’t make a claim then Zales gets to keep the money.
Hmmmm.
Now the class counsel (the Wolf and Avi Kaufman) are set to make a third of the settlement figure– $2.5MM, and that’s money Zales will have to spend.
So assuming a 6% claims rate the class will only get about $300k.
Avi and Paronich will get $2.5MM (so it goes.)
And Zales will pay a total of about $3MM with costs figured in.
While $3MM sounds a lot better than $7.5mm (and it is) that’s still about $40.00 a class member–which is top of market for these settlements. And the market for a DNC SMS settlement should be about ZERO until the courts figure out whether SMS is even covered by the TCPA’s DNC.
I suppose I could understand a deal like this if Zales had been beaten up in litigation or there was some “law of the case” binding them but the case was just filed in March, 2025 and the case settled in July, 2025.
Rather obviously these #biglaw lawyers were ready to settle pretty much as soon as the case was filed. They had ON CONCEPT of what McKesson meant for the TCPA and they did not properly advise their client.
Calling a spade a spade here.
Just terrible.
But from a certain perspective I love to see the Wolf and Avi jamming an SMS TCPA class action settlement under the wire at the last minute. These guys are pro.
Anyhoo per the administration website: If you received text messages from Zales while you were on the National Do Not Call Registry, you may be entitled to a payment from a class action settlement.
Deadline to make a claim is September 27, 2025.
Deadline for opt out/objection is October 27, 2025.
November 17, 2025 at 9:30 a.m. ET final approval hearing.
Chat soon.
[View source.]
