Business Payment Systems LLC, a New York-based independent sales organization, faces paying $2.5 million to settle claims in a class-action lawsuit over alleged unsolicited faxes the company sent to plaintiffs, according to a settlement claims form the King County Superior Court in Washington state released Monday.
In 2006, Kavu Inc., a Seattle-based clothing retailer, filed suit against Business Payment Systems, claiming the company violated the Telephone Consumer Protection Act of 1991 by allegedly sending unsolicited faxes to the merchant, court records show.
In response to the 2006 complaint, Business Payment Systems denied any wrongdoing and said it neither knowingly nor willfully violated the act, which the ISO repeated in the claims form.
Mike Berman, chief operating officer of Outside Ventures LLC, parent of Business Payment Systems, says the settlement should have little impact on the company.
"The program [of sending faxes] has long been stopped," Berman tells ISO&Agent Weekly.
The claims form says each class member could receive up to $1,500 in compensation. The court will hold a June 23 hearing to decide whether to approve the settlement.
If the court approves the settlement, in exchange for receiving payment class members will release Business Payment Systems and its subsidiaries from all liability associated with the case.
Berman adds that "whatever the court decides will be fair and just."
The settlement also would include several other business run by Outside Ventures.