A judge could sign off early this fall on a $1.6 million deal to end a class action against RocketReach, a website that claims to sell access to contact information for "the right decision makers" in business and other spheres of influence.
Under the deal, the plaintiffs' attorneys, with the firms of Edelson P.C., of Chicago, and Bursor & Fisher, of New York, could receive up to 35% of the total settlement funds.
In April 2021, Aimee Krause, identified as a property manager with ETZ Capital in Chicago, filed a class action complaint against RocketReach in Chicago federal court. The lawsuit accused Rocketreach of violating the Illinois Right of Publicity Act by using her and other people's identities to encourage people to make purchases on RocketReach.
J. Eli Wade-Scott
| Edelson P.C.
The lawsuit claims RocketReach violated the act when it allegedly used individuals' names, email addresses, work information, job title, and links to social media profiles, or other identifying information to advertise or promote the subscription service to its people search engine.
The lawsuit was filed on Krause's behalf by attorneys J. Eli Wade-Scott, Ari J. Scharg and Michael Ova, of Edelson PC, of Chicago; and Philip L. Fraietta, of Bursor & Fisher, of New York.
RocketReach is represented by attorneys Steven L. Baron, Brendan J. Healey and Sharon R. Albrecht, of Baron Harris Healy, of Chicago.
The settlement class includes Illinois residents whose names were displayed on RocketReach's website in connection with a "Phone Plan” link from April 12, 2020 to April 11, 2023.
If the court approves the settlement, members of the settlement class will receive an equal, or pro rata, share of either a $1.596 million fund after notice and administration costs, incentive award, and attorneys' fees have been paid. Individual payments to settlement class members are estimated to be $146 to $243 each, but the settlement payments could be more or less depending on the number of valid claims submitted. RocketReach identified 26,605 individuals in the putative class.
Claim forms are due by Monday, July 17.
In June 2021, RocketReach moved to dismiss the complaint arguing the conduct Krause alleged was covered by one or more of IRPA's exemptions and that the First Amendment protects their publications. RocketReach also claimed liability under the Communications Decency Act and said Krause’s claim violates the "dormant" Commerce Clause. That motion to dismiss was denied.
According to court documents, the parties then began exploring the possibility of settlement before a federal magistrate judge.
In court documents addressing the settlement, attorneys for the plaintiffs noted they believed the settlement was the best conclusion for the case, as RocketReach could mount defenses in court that could jeopardize their ability to secure any return for Krause and the other class members.
RocketReach denied allegations of wrongdoing and liability, denied material allegations in the complaint, and believes it would prevail in defeating class certification and at any trial on the merits or summary judgment proceeding, but similarly concluded this settlement agreement is desirable to avoid the time, risk, and expense of defending against the lawsuit and reducing uncertainty at trial.
A final settlement approval hearing is scheduled for Sept. 12.