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.
