The $379 Million Phone Call: Why DNC/TCPA Lawsuits Are Exploding in 2025

The Telemarketing Litigation Tsunami Is Here

"252,765 calls, 150 customers, and up to $379 million in liability."

That's not a typo. That's the nightmare a home security company faced after its lead generator made illegal telemarketing calls. And stories like this are becoming frighteningly common.

As the CTO of Crankshaft, a company that verifies and scrubs leads before they're sold, I have a front-row seat to the exploding risks around telemarketing compliance. And here's my warning: if you're a sales agency or lead buyer making phone calls in 2025, the litigation landscape should terrify you.

From Drizzle to Downpour: The Litigation Surge

Telemarketing lawsuits aren't new, but they're reaching unprecedented levels. We saw a peak in 2016 (about 4,700 federal cases), then a brief lull as courts narrowed some definitions.

But now the floodgates have reopened:

• Private TCPA lawsuits rose nearly 10% in 2023, with 1,683 cases filed (up from ~1,540 in 2022) (Year-End Report Reveals Increased TCPA Filings, 2024)
• Class actions jumped 40% in 2023 and another 21% in 2024 (October 2024 Saw Largest TCPA Class Action Filings)
• October 2024 set an all-time record with 115 TCPA class actions filed in a single month (October 2024 Saw Largest TCPA Class Action Filings)
• 70% of TCPA cases are now filed as class lawsuits (Navigating TCPA Compliance Rules, TransUnion)

Why the spike? First, plaintiffs' lawyers have refined their tactics. The Supreme Court's 2021 Facebook v. Duguid decision initially caused a dip in cases, but creative pleadings are now bypassing that hurdle.

Second, the sheer scale of illegal robocalls means there's a massive pool of potential violations. Consumers fed up with incessant "spam likely" calls are more aware of their rights, and a cottage industry of professional TCPA plaintiffs has emerged.

Most importantly, the financial incentive is enormous. The TCPA/DNC laws set damages at $500 per violation (tripled to $1,500 for willful cases), with no cap on total damages. We routinely see TCPA class claims seeking hundreds of millions in penalties.

Industries in the Crosshairs

No industry using telephones for business is truly safe, but certain sectors have become prime targets due to their heavy reliance on outbound calling and lead buying:

What do all these industries have in common? They rely on volume outreach and often use third-party lead sources or call centers. That combination is risky: high volume increases the chance of calling someone you shouldn't, and outsourcing blurs the lines of responsibility.

The $61 Million Lesson: It's YOUR Problem, Even If You Didn't Dial

If you remember nothing else, remember this: you can be held liable for DNC/TCPA violations even if you didn't personally dial the phone.

Courts and regulators have made it crystal clear that everyone in the call supply chain bears responsibility:

In Krakauer v. Dish Network, Dish faced a class action after a marketing partner made multiple sales calls to people on the DNC Registry. Dish argued it told the contractor not to break the law. Didn't matter. The jury found Dish's vendor was acting as its agent and hit Dish with $61 million in damages. (Fourth Circuit Affirms $61 Million Award)

In Braver v. NorthStar Alarm, a home security company paid a vendor (Yodel) to cold-call prospects and warm transfer interested leads. In just 9 months, Yodel placed over 250,000 calls using a prerecorded system – without consent. NorthStar was found vicariously liable for every illegal call, facing potential damages of $379 million. (Company Liable for TCPA Violations Committed by Third Party)

In Newman v. Integrity Marketing (Jan 2025), a major insurance lead aggregator claimed it wasn't liable for TCPA violations by affiliate marketers since it doesn't sell insurance itself. The court's response, in essence: Nice try. If you organize, pay for, or benefit from telemarketing, you're a likely target in any lawsuit. (TCPA Case: Integrity's Arguments Rejected by Court)

Each of these cases carries the same blunt message: every link in the sales chain must prioritize compliance, or everyone will pay.

Compliance Is King: Your Survival Guide

In this high-risk environment, proactive compliance isn't optional – it's essential. Here's how to protect your business:

Compliance Technology: Your Shield Against Lawsuits

The good news is that technology has evolved alongside telemarketing regulations. At Crankshaft, our platform provides several layers of protection:

By baking compliance into your software and workflows, you reduce the reliance on human memory or manual processes. One client in the insurance sector told us that after implementing rigorous compliance, their contact rates initially dipped, but their conversion rate went up. They maintained sales with half the outreach volume, while dramatically reducing lawsuit risk.

Final Thoughts: Compliance as Opportunity, Not Obstacle

The rising tide of TCPA lawsuits isn't slowing down. Industry experts predict we're at the peak of the TCPA class action era. Rather than dread it, use this as motivation to strengthen your compliance now.

From my vantage point as CTO of Crankshaft, the companies that thrive aren't seeing compliance as a burden, but as part of their brand promise: "We respect consumers and play by the rules." In a market increasingly skeptical of telemarketers, being known as a compliant caller can actually help you stand out.

Remember: the cost of proper compliance is far, far less than the cost of a lawsuit. Don't wait until you're served with papers to tighten up your ship. The water is choppy out there, but with robust compliance powering your lead generation, you can navigate these risky waters safely.

After all, the only calls we want to see you making are closing deals – not calling your lawyers.