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Settlement unlikely, agree parties in lawsuit over ads sent by text
(Above) A text message received by Phil Hollingsworth on February 17, offering a $25 gift certificate from Restaurant.com. The link in the message goes to Restaurant.com’s website. July 2, 2016 – A federal lawsuit over ads sent by text is moving forward, with both sides telling the judge they have discussed settlement but do not believe it is likely. Phil Hollingsworth of Marengo, Illinois, about 60 miles northwest of Chicago, filed his lawsuit on March 11 against three companies, including Restaurant.com, whose executive officers include two River North residents. Hollingsworth claims he received “unauthorized text messages” on his mobile phone in February that were advertisements for Restaurant.com, American Express, and Jackson Hewitt, a tax preparation service. The ads offered him a gift certificate from Restaurant.com if he filed his income tax return through Jackson Hewitt and accepted his refund on an American Express credit card. The text messages continued, claims Hollingsworth, even after he texted back “STOP,” as instructed by the ads. He says the messages violated the Telephone Consumer Protection Act and he’s entitled to at least $500 and as much as $1,500 per violation.
The “discovery” phase of the lawsuit, in which parties exchange information, is expected to take 18 months, according to a joint status report filed on June 24. This is the second federal lawsuit the 350-employee Restaurant.com is currently defending. The company, based in Arlington Heights, is still waiting for a decision in a lawsuit filed by two residents of New Jersey over fine print on gift cards they purchased from Restaurant.com. In the New Jersey case, the plaintiffs have filed a motion for judgment, including attorney fees, and to end the case. Attorneys representing Restaurant.com have filed their objections. Plaintiff attorneys had until June 17 to reply to those objections. As class action lawsuits, both cases could cost Restaurant.com millions of dollars.
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