ZoomInfo has agreed to pay close to $30 million to resolve potential class claims that it nonconsensually used people's names and identities to advertise paid access to its full database. This settlement allows monetary recovery for just over a million class members across four states, class counsel informed an Illinois federal judge on Thursday.

U.S. District Judge Charles Kocoras mentioned during a brief hearing on the motion for preliminary approval that he would need to review the settlement terms further before giving an initial green light.

ZoomInfo To Pay $30M To End Privacy Suit : Details of the Suit

The suit claims ZoomInfo used class members' identifying information such as their names, business addresses, work history, job titles, and partial contact information without their consent. This was done to market subscriptions to its website, allegedly violating the Illinois Right of Publicity Act and similar right of publicity laws.

Groundbreaking Settlement

In her motion for initial approval, lead plaintiff Jessica Ramos highlighted that the parties reached a "groundbreaking" deal on the verge of a ruling on certification for an Illinois class. This settlement, totaling about $29.5 million, is noted as the largest aggregate settlement fund ever secured for these alleged violations.

The settlement addresses claims under the right of publicity laws of California, Illinois, Indiana, and Nevada. ZoomInfo has agreed to establish state-specific settlement funds for each state's settlement class, with amounts based on a percentage of the available statutory damages under each state's right of publicity law.

ZoomInfo To Pay $30M To End Privacy Suit : Expected Payments

Based on an anticipated claims rate of 10-20%, class members are expected to receive payments ranging from:

• $108.43 to $216.86 in California
• $145.93 to $291.85 in Illinois
• $740.77 to $1,481.54 in Indiana
• $971.24 to $1,942.47 in Nevada

Significance of the Settlement

"Against a backdrop where no-money statutory consumer protection settlements are still being approved, the significant cash fund here stands out," Ramos said. She also noted that compared to other right of publicity settlements, this one "raises the bar."

The deal also provides injunctive relief. ZoomInfo will be barred from using any class member's identity to advertise its products and services and has agreed to stop using any of their full names in such advertising.

ZoomInfo To Pay $30M To End Privacy Suit : Attorney Fees and Case Background

Class counsel is seeking 35% of each state's settlement funds for attorney fees.

Another lead plaintiff, Jessica Leving Siegel, first sued ZoomInfo in Illinois federal court in April 2021, stating she never provided written consent, as required by Illinois privacy laws, for ZoomInfo to use her identity for commercial products or to promote its website.

ZoomInfo asked the court to dismiss the suit, arguing that Leving Siegel failed to state an IRPA claim. However, Judge Kocoras refused to dismiss the case in September 2021.

After the case survived the dismissal bid, an amended complaint led by Ramos was filed in Illinois in October 2021. The parties reached a settlement in principle in March, following years of adversarial litigation, contentious discovery, drawn-out settlement discussions, and an unsuccessful mediation session.

"This settlement sets the high-water mark for right of publicity cases and we're looking forward to presenting it to the court," Eli Wade Scott of Edelson PC, one of the attorneys for the potential class, told Law360.

Counsel for ZoomInfo could not immediately be reached for comment on Thursday.

Legal Representation

Ramos is represented by Benjamin H. Richman, Ari J. Scharg, Benjamin S. Thomassen, J. Eli Wade Scott, and Michael W. Ovca of Edelson PC, and Philip L. Fraietta of Bursor & Fisher PA. ZoomInfo is represented by Martin L. Roth, William E. Arnault, Katherine T. Walling, and Rachel B. Haig of Kirkland & Ellis LLP.