Consumer Reports settles lawsuit for $16.3 million

Consumer Reports has settled a lawsuit for $16.3 million that claimed that the company sold personal information about its subscribers to list brokers without the consumers’ permission, reports Keith Kelly of the New York Post.

Kelly reports, “Other major publishers to be hit with lawsuits derived from the Michigan state law included Hearst, Condé Nast, Time Inc. and Rodale. They all reached settlements of seven or eight figures in recent years. The tentative agreement, which still must be approved by a judge, also says lawyers for the plaintiff may seek to recover another $5.6 million in court and legal fees.

“Not surprisingly, CR is angry. ‘Allegations about CR in the suit were misleading, unfounded, or untrue, and brought forward by opportunistic attorneys who understood that while CR did not have the resources to engage in extended litigation, we had the insurance coverage needed for them to reap a large settlement payout with substantial legal fees,’ said a spokesman for CR.

“He said the $16.375 million settlement amount is covered by insurance. ‘That is, of course, no consolation for how the law failed a nonprofit whose mission is to prevent this very predatory behavior,’ he said.”

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