Mobile marketing firm settles class action over text messaging spam

Mobile phone users who received unwanted text messages may get up to $150 following what appears to be an unprecedented settlement.
Chicago law firm Blim & Edelson declared victory after a federal court approved the settlement between Distributive Networks L.L.C. and members of the class action suit. While settlements have been reached between wireless carriers and companies accused of mobile spam, the news marks the first time subscribers will receive the cash instead of network operators, according to attorney Jay Edelson.
“There are a handful of these class-action suits (pending), but this is the first that has actually settled,” Edelson said. “Our firm has about five of these suits nationwide, and there’s one other we’re aware of that is also ongoing.”
Members of the class action suit say they received unwelcome texts touting Distributive Network Web sites such as Astromobo, Daily Pop Gossip, Mad Love Tips and Ringstar Mobile. As many as 1,000 users may be eligible for the settlement money.
Executives from Distributive Networks, a Washington-based mobile marketing firm, were not immediately available for comment. The company did not admit to any wrongdoing under terms of the settlement.
While the mobile content business has suffered its share of black eyes-direct-to-consumer ringtone vendors such as Jamba and Blinko have both been accused of targeting minors and using deceptive marketing practices-wireless spam has yet to become a major headache for most U.S. consumers. Edelson said he’s hopeful the settlement sends a message to other mobile marketing firms hoping to send text ads to wireless phones.
“We think that the settlement is going to prove a strong deterrent for other companies looking to get into the text message advertising game,” Edelson said. “We think, obviously, that this is a pretty good signal to defendants” in other pending cases.