Two nationwide settlements have been reached in Keithly v. Intelius, Inc. (W.D. Wash.). The litigation against Intelius, Inc. relates to negative option programs and improper post-transaction marketing. The combined settlements make $12 million in cash and a total of $3.5 million in vouchers available to the Class.

Case Background

Cohen Milstein has filed a class action lawsuit against Intelius, Inc. in the United States District Court for the Western District of Washington.  Among the services Intelius offers on the Internet are “reverse” cell phone and land-line directories, “people search” directories and “background check” information.  When class members sign up for such services, they provide their credit/debit card information.  According to the complaint, through Intelius’ misleading “in-cart marketing” and “post-transaction marketing” efforts on its website, when the consumer purchases an Intelius product, the consumer also unknowingly enrolls in a subscription-based service with Intelius or Adaptive marketing, LLC.  The details and/or benefits of those subscription services generally are never made known to the consumer, yet the consumer is then later billed a significant monthly fee – often $19.95/month – in perpetuity. 

Cohen Milstein, as one of the co-lead class counsel successfully defended against Intelius’ motion to dismiss the case and has entered into a proposed class action settlement for the “in-cart,” or Identity Protect component of the case.  If approved, the settlement will confer a substantial benefit on the Class and the post-transaction claims against Intelius would continue to be litigated.