Amazon's online pharmacy PillPack LLC has agreed to a $6.5 million settlement to resolve allegations that it was responsible for unsolicited telemarketing calls, violating federal laws designed to protect consumers from robocalls and spam messages.

A motion filed Tuesday in Washington federal court urged U.S. District Judge David G. Estudillo to grant final approval of the deal, which would compensate thousands of affected consumers. The agreement aims to close a lawsuit that accused PillPack of using telemarketing subcontractors to make unauthorized calls, allegedly breaching the Telephone Consumer Protection Act (TCPA).

Thousands of Consumers Eligible for Payouts

The class action, led by Washington resident Aaron Williams, represents a vast number of consumers who received unwanted calls. According to court filings, approximately 18,000 claims have been submitted so far, with 30,000 phone numbers included in the class list.

If approved, the net settlement fund would provide each affected consumer an estimated payout between $212 and $350, with the baseline amount set at $127 per claimant.

Legal Fees and Settlement Breakdown

The proposed Amazon’s PillPack $6.5M settlement sets aside $2.5 million to cover attorneys’ fees and litigation expenses. However, the agreement does not constitute an admission of wrongdoing by PillPack, which continues to deny liability.

Amazon, despite its ownership of PillPack, was not named as a defendant in the lawsuit.

The Allegations Against PillPack

Williams first filed the lawsuit in April 2019, claiming he had received unsolicited calls from a telemarketer that later transferred him to a PillPack sales representative.

PillPack pushed back, arguing that it did not directly place the calls and that it was not vicariously liable for actions taken by third-party vendors. The company contended that it had not authorized the telemarketing firms to make the calls on its behalf.

Court Rejects PillPack’s Defense

In 2022, Judge Estudillo dismissed PillPack’s defense, citing a Ninth Circuit ruling in Henderson v. United Student Aid Funds Inc. The decision reinforced that companies can be held accountable for TCPA violations committed by third-party telemarketers acting on their behalf.

This ruling paved the way for the settlement, which, if finalized, will end years of litigation over PillPack’s alleged role in the telemarketing campaign.

Awaiting Court Approval

With the settlement awaiting final judicial approval, representatives for both Williams and PillPack have not yet provided public statements regarding the case.

Legal Representation

• Williams and the class are represented by Beth E. Terrell, Jennifer Rust Murray, Adrienne D. McEntee, and Blythe H. Chandler of Terrell Marshall Law Group PLLC, Walter M. Smith and Steve E. Dietrich of Smith & Dietrich Law Offices PLLC, and Anthony I. Paronich of Paronich Law PC.
• PillPack is represented by Kenneth E. Payson, Lauren B. Rainwater, and Eric A. Franz of Davis Wright Tremaine LLP.