Health insurance company to pay $10.5 million settlement — see if you are eligible
No one likes to get unwarranted messages from companies, but sometimes, it can help you make a bit of money. That is what thousands of people might be entitled to after a recent class action settlement worth a whopping $10.5 million was closed. The settlement was over marketing text messages sent to people after they had asked the company to stop doing so, which was in violation of federal and Florida laws.
As per a report in Newsweek, the company in question was Kaiser Foundation Health Plan Inc., which has its headquarters in Oakland, California. The report states that Kaiser Foundation Health Plan Inc. sent marketing messages to thousands of people even after they had opted not to receive them. This is against the law as it affects a consumer's privacy and consent around mobile communications. The Telephone Consumer Protection Act (TCPA) and similar state laws allow people who receive such unwarranted communications to receive direct payments.
Usually, those seeking compensation have to submit valid claim forms, along with administrative and notice costs, court‑approved attorneys’ fees, and any service award granted to the class representative, as per the report. However, this official court notice reveals that one does not need to do any of that to apply for compensation. The submission of a valid claim form is the only requirement.
The reason for this lies in technological advancement. The report states that the settlement administrator will verify each person’s claim using Kaiser’s own records, determining exactly how many qualifying texts were sent. However, those seeking compensation must fill out one accurate, timely claim form, which will then be matched against Kaiser’s own data. The lawsuit alleged that the TCPA and Florida’s Telephone Solicitation Act (FTSA) had been violated.
However, the company denied any wrongdoing. "As part of the proposed Settlement, Kaiser does not admit to any wrongdoing and continues to deny the allegations against it. The Court has not decided who is correct," a company statement read. Either way, they will have to shell out millions of dollars thanks to the settlement. The order covers two groups of people who received constant text messages between January 21, 2021, and August 20, 2025.
The first group is the TCPA Class, which includes consumers nationwide who were sent more than one text within 12 months after opting out. The second group is named FTSA Class, which includes Florida consumers who received more than one text at least 15 days after sending a "STOP" message. "If the Settlement Fund is insufficient to pay $75.00 for each Qualifying Text Message for all approved Claims, the per-message amount will be uniformly reduced on a pro rata basis so that the total of all Claim Settlement Payments, together with any Court-approved Attorneys’ Fees and Expenses, Notice and Administrative Costs, and any Service Award, does not exceed the Settlement Fund,” the official settlement report read.
More on Market Realist:
Amazon Prime members to get refund after major lawsuit — key details revealed
Over 1,000 companies line up for tariff refunds anticipating Supreme Court ruling
Starbucks to pay $38.9 million settlement after it violated New York's labor laws
