A federal court in Wisconsin approved a $4.75 million settlement in Keith v. Hy Cite, a TCPA class action lawsuit filed against Hy Cite Holdings, Inc. for making robocalls to wrong phone numbers. The settlement allocates $1.67 million to pay the plaintiff’s attorneys for their work on the case, while the remaining funds are designated for class members who received unwanted calls, typically resulting in individual payouts exceeding $1,500 each.
This settlement, approved on March 24, 2026, highlights how TCPA litigation can produce substantial compensation even when the defendant’s misconduct targets a relatively limited pool of affected consumers. The case centered on robocalls made by Hy Cite, a cookware and home products company, to approximately 18,000 people who received calls intended for different numbers. Under the Telephone Consumer Protection Act, making unwanted robocalls—especially to wrong numbers where the recipient never had a relationship with the company—violates federal law and entitles class members to statutory damages. This settlement demonstrates that TCPA violations, even when unintentional dialing errors are involved, can result in meaningful financial consequences for corporations.
Table of Contents
- How Do Attorney Fees Get Determined in TCPA Class Action Settlements?
- Why Is the Per-Class Member Payout Over $1,500 Despite the Large Attorney Fee Award?
- What Type of Misconduct Did Hy Cite Engage in That Led to This TCPA Settlement?
- What Are the Practical Steps for Class Members to Claim Their Settlement Payment?
- Are There Limitations or Exclusions in This TCPA Settlement That Class Members Should Know About?
- How Does the National Consumer Law Center Fit Into This Settlement?
- What Does the Hy Cite Settlement Mean for Ongoing TCPA Enforcement and Future Settlements?
- Conclusion
How Do Attorney Fees Get Determined in TCPA Class Action Settlements?
In TCPA class action settlements, attorney fees are negotiated between the plaintiff’s lawyers and the defendant’s counsel, then submitted to the court for approval. The court must determine whether the fee award is reasonable given the amount recovered, the complexity of the litigation, and the benefits obtained for the class. In the Hy Cite settlement, the $1.67 million in attorney fees represents approximately 35% of the total settlement—a percentage that falls within the typical range for consumer class actions, though it’s generally higher than what plaintiffs themselves receive after distribution costs. Federal judges apply a “lodestar” analysis or percentage-of-recovery method to evaluate fairness.
The lodestar approach calculates the reasonable hourly rates for the attorneys involved multiplied by the hours worked, then applies an adjustment factor for the risk and complexity. The percentage-of-recovery method, used here, examines whether the percentage of the settlement paid to attorneys is reasonable in light of comparable cases. Courts are increasingly scrutinizing attorney fee awards to ensure they don’t consume excessive portions of the settlement fund, particularly when class members’ individual payouts are already modest. The $1.67 million fee award in this case reflects the attorneys’ work investigating Hy Cite’s calling practices, developing evidence of systematic wrong-number dialing, negotiating with the defendant, and navigating court approval processes. However, class members should understand that when attorney fees consume a significant portion of the settlement fund, fewer dollars remain for individual class payouts, even though the class may appear large on paper.
Why Is the Per-Class Member Payout Over $1,500 Despite the Large Attorney Fee Award?
The expected payout of over $1,500 per class member assumes approximately a 10% claims rate, meaning that only one out of every ten class members is expected to file a claim and submit proof of their damages. This anticipated low participation rate is common in class action settlements because many affected consumers never learn about the settlement, forget about it, or decide the claims process isn’t worth their effort. With approximately 18,000 class members identified, a 10% claims rate means roughly 1,800 people would likely file claims, leaving substantial settlement funds to cover each valid claim. This dynamic creates a significant limitation that class members should understand: the actual per-claim payout depends entirely on claims rates. If more than 10% of class members file claims, each individual payout decreases.
Conversely, if fewer people participate, remaining funds may go to an unclaimed settlement fund (often earmarked for the National Consumer Law Center or similar cy pres recipients). In practice, many class members never learn they’re eligible, don’t understand how to file a claim, or miss filing deadlines, which typically range from 60 to 90 days after settlement approval. The $1.67 million in attorney fees is calculated before these claims payouts are determined. The remaining settlement fund—approximately $3.08 million—is available for class member compensation after administrative costs are deducted. This structure means that class members’ actual recovery depends on their own participation, not on any guarantee in the settlement document.
What Type of Misconduct Did Hy Cite Engage in That Led to This TCPA Settlement?
Hy Cite made unsolicited robocalls to phone numbers that were not actually customers and did not consent to receive marketing calls. The wrong-number aspect of these calls is particularly significant under TCPA jurisprudence because the company had no prior business relationship with the recipients, making the calls both unwanted and completely unexpected. The plaintiff, Keith, and other class members received calls from Hy Cite despite never purchasing from the company, never requesting product information, and never authorizing contact. This type of calling practice typically occurs when a company’s dialing system uses outdated phone lists, fails to apply proper do-not-call screening, or randomly generates phone numbers.
Hy Cite’s conduct illustrates a compliance problem that regulators and judges view particularly seriously: when a company makes robocalls without first confirming that recipients have agreed to receive them. The TCPA requires either prior written consent for automated calls or inclusion on the company’s internal do-not-call list, standards that Hy Cite apparently failed to meet. The wrong-number aspect also meant that class members had no ability to opt out or correct the company’s dialing records because they had no account, no prior relationship, and no known way to contact Hy Cite to complain. This trapped-consumer dynamic—where affected people receive calls despite having done nothing to trigger them—strengthens both the legal case and the settlement value, which is reflected in the over $1,500 expected per-person recovery.
What Are the Practical Steps for Class Members to Claim Their Settlement Payment?
Class members in the Hy Cite settlement must submit a claim form to receive compensation, typically within 60 to 90 days of the settlement’s preliminary or final approval date. The claim process usually requires submitting a simple form attesting to your phone number and confirming that you received calls from Hy Cite. Some settlements allow claims to be filed online, while others require paper submissions mailed to an administrator address. The claims administrator will maintain the settlement website with all necessary forms, instructions, and key deadlines. To successfully file a claim, class members should gather any documentation they have that proves they received the unwanted calls—such as call logs, voicemails, or written records.
However, unlike some other settlements that require extensive proof of damages, TCPA class actions typically use straightforward claim processes because the statutory nature of TCPA violations means courts recognize that individual consumers rarely keep detailed records. Submitting a basic claim form attesting to your receipt of the calls is usually sufficient, though some settlements request more detailed information about the frequency of calls or the time of day they were received. A critical limitation is that class members must actively file a claim to receive any payment. The settlement doesn’t automatically deposit money into the bank accounts of affected consumers—each person must complete the claims process or risk forfeiting their share. This is fundamentally different from how some other consumer settlements work, where claims are processed through credit card companies or financial institutions automatically. The settlement administrator will send direct mail or email notices to last-known addresses and phone numbers, but many people discard such notices or miss the deadline.
Are There Limitations or Exclusions in This TCPA Settlement That Class Members Should Know About?
TCPA class action settlements typically include provisions that exclude certain groups from the class definition, most commonly people who never owned or possessed a phone during the period when the calls were made. In the Hy Cite case, class members must have been the called phone number owner or authorized user during the time Hy Cite was making calls. If your phone number changed hands after you received calls but before the settlement approval, you may face challenges in establishing your claim, though the claims administrator usually makes common-sense decisions in marginal cases. Another significant limitation involves timing and statute of limitations issues. The settlement likely covers calls made within a specific window—typically two to four years before the lawsuit was filed.
Calls made outside this window, even to the same people, would not be compensable under the settlement. This means class members who received calls from Hy Cite long ago, outside the litigation window, won’t recover for those calls even though the company’s misconduct was systematic. The settlement also typically includes a release clause requiring class members to waive their right to sue Hy Cite individually for the same calling conduct. Once you claim settlement funds, you cannot later file your own separate TCPA lawsuit against Hy Cite for the calls covered by this settlement. This release is non-negotiable—it’s the trade-off that allows the defendant to resolve all claims at once. Class members should consider whether they want to participate, understanding that participation means giving up any potential individual litigation, even though most class members wouldn’t have the resources or legal standing to sue independently anyway.
How Does the National Consumer Law Center Fit Into This Settlement?
The settlement documents likely designate a portion of any unclaimed settlement funds for the National Consumer Law Center (NCLC), a nonprofit organization that advocates for low-income consumer rights. If class members don’t claim their share of the settlement, the unclaimed funds are typically distributed to the NCLC rather than returning to Hy Cite. This is called a “cy pres award”—a legal mechanism that directs unclaimed settlement money to organizations that serve the same population harmed by the defendant’s conduct.
The NCLC uses such funds to conduct research on predatory calling practices, educate consumers about their TCPA rights, and support litigation against companies that violate the statute. While this sounds beneficial, class members should understand that every dollar going to the NCLC is a dollar not available for individual class member compensation. This creates an incentive for the defendant and sometimes plaintiffs’ attorneys to structure settlements where cy pres awards are substantial, knowing that low claims rates will leave significant unclaimed funds. This dynamic is controversial in class action law, with some judges and consumer advocates arguing that when class members are easily identifiable (as they are in TCPA cases based on phone numbers), unclaimed funds should be returned to the defendant rather than donated to nonprofits, to discourage underfunded settlement notices.
What Does the Hy Cite Settlement Mean for Ongoing TCPA Enforcement and Future Settlements?
The approval of this $4.75 million settlement in March 2026 continues a trend of substantial TCPA class action judgments and settlements. The TCPA, enacted in 1991, has become one of the most actively litigated federal consumer protection statutes, with hundreds of class actions filed annually. Courts have consistently held that even single unwanted calls can constitute TCPA violations when they involve robocalls to numbers without prior consent, and settlements routinely exceed $1 million when class sizes are substantial.
The Hy Cite case reinforces that defendants cannot escape TCPA liability by claiming that wrong-number dialing was inadvertent or that call volumes were small relative to the company’s size. Courts view the statute as a strict liability regime—if the calls violated the TCPA’s requirements, the defendant is liable for statutory damages regardless of intent. For consumers, this means that reporting unwanted robocalls and supporting TCPA litigation remains one of the most effective ways to hold corporations accountable, even when individual consumers suffer modest direct harm. The trend toward larger settlements and higher per-call damages suggests that the TCPA enforcement landscape will continue producing meaningful recoveries for class members in the coming years.
Conclusion
The $4.75 million Keith v. Hy Cite settlement demonstrates that TCPA class action litigation can deliver substantial compensation to consumers affected by corporate calling violations. With approximately 18,000 class members and expected per-person payouts exceeding $1,500, the settlement provides meaningful financial recovery to people who received unwanted robocalls for calls they never authorized.
The $1.67 million attorney fee award, while substantial, reflects the complexity and risk involved in TCPA litigation and falls within ranges approved by federal courts for comparable consumer class actions. To receive your share of this settlement, you must actively file a claim before the deadline expires, typically 60 to 90 days after the settlement becomes final. Monitor the official settlement website or watch for notices by mail to confirm claim procedures, required documentation, and your specific deadline. If you received calls from Hy Cite and believe you’re part of the affected class, filing a claim is the essential step to convert your legal rights into actual compensation.