January 11, 2018 / 9:13 PM / 7 months ago

9th Circuit rules for payday lenders in spam text class action

Three payday lenders and two of their marketing firms are not liable for nearly 100,000 illegal text messages sent by a one-man texting operation because the texter was not acting as their agent, a federal appeals court ruled on Wednesday.

In a unanimous decision, a three-judge panel of the 9th U.S. Circuit Court of Appeals rejected claims by consumers that the defendants were vicariously liable for the text messages because they accepted the benefits of the texts while failing to investigate the company sending them, AC Referral Systems.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2qVODjq

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