Facts

Kenneth Wright filed a class action against Lyft Inc. in relation to Lyft's text message marketing practices.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged that Lyft marketed its products and services through text message advertisements, violating the Telephone Consumer Protection Act, 47 U.S.C. Section 227, the Washington Consumer Electronic Mail Act, and the Washington Consumer Protection Act. Plaintiffs claimed Lyft engaged in a practice known as mobile growth hacking, described as bribing users of Lyft's app into allowing access to their contact list, and using the gathered contact information to send unsolicited text messages promoting the company. Plaintiffs argued Lyft essentially paid users for consumer data pertaining to nonusers, who the company then contacted without consent using automated telephone dialing systems. Plaintiffs claimed Lyft's practices damaged them by costing money and data on their cell phone plans.

DEFENDANT'S CONTENTIONS: Lyft denied all liability and contested plaintiffs' allegations.

Result

The parties agreed to a settlement. Lyft agreed to pay nearly $4 million into a settlement fund to benefit the settlement class and class counsel.