Imagitas, Inc. Successfully Defends Major Class Action Suit

Imagitas, Inc., a marketing solutions firm specializing in privacy-protected access to hard-to-reach consumer audiences, announced Monday (March 1st) that it secured victory in the lead class action lawsuit, filed in 2006, which alleged that commercial solicitations in envelopes containing vehicle registration were in violation of the federal Drivers Privacy Protection Act (“DPPA”). 

Imagitas, a wholly-owned subsidiary of Pitney Bowes Inc, was represented in this matter by the trial litigation firm Robins, Kaplan Miller & Ciresi L.L.P.
 
Vicki O’Meara, Executive Vice President & Chief Legal & Compliance Officer of Pitney Bowes said, “We couldn’t be more pleased with the outcome of this case.  The court’s decision resolves any doubt about the ability of states to utilize targeted advertising as means to offset costs.”
 
Joel A. Mintzer, partner at Robins, Kaplan, Miller & Ciresi and lead counsel to Imagitas, commented, “The courts have affirmed Imagitas’ right to assist state governments in funding their public programs through the use of commercial advertising.  With this ruling, municipalities and state-agencies that may have hesitated to utilize this service in the past because of the ambiguity in the law can now move forward to off-set costs without the fear of major liability.” 
 
Tamara Dukes, the SVP Strategic Alliances for Imagitas, added, “By including advertisements in their mailings, states have eliminated more than $12 million in costs and have generated more than $3 million in new revenue, without any additional taxes or fees.”
 
Beginning in 2001, Imagitas coordinated public-private partnerships with state governments in New York, Massachusetts, Minnesota, Missouri, Florida and Ohio, which utilized advertising revenue to offset the considerable recurring costs associated with the printing of the annual motor vehicle renewal mailings. Pursuant to these contracts, Imagitas solicited advertising to be inserted into the renewal envelopes.
 
Beginning in 2006, ten putative class action lawsuits were filed against Imagitas on the grounds that the insertion of advertising violated the DPPA, which restricts a state’s ability to disclose information contained in its motor vehicle database.  Under the terms of the DPPA, which allows for $2,500 in statutory damages per person, Imagitas faced liability of over $50 billion.
 
In December 2006, Imagitas successfully moved to have the cases transferred to a single court to ensure a swift, uniform and final conclusion to the lawsuits.  In April 2008, the district court granted summary judgment in favor of Imagitas, and in December 2009 the Eleventh Circuit Court of Appeals affirmed the decisions.  On February 17, 2010, the Eleventh Circuit Court rejected the Plaintiffs petition for rehearing en banc.