States Unite to Take Down Telecom Giant

In an unprecedented move, attorneys general from multiple states have banded together to launch a lawsuit against Avid Telecom, a telecommunications company accused of bombarding millions of individuals on the Do Not Call Registry with a staggering 7.5 billion illegal robocalls. The legal battle, filed in U.S. District Court in Phoenix, Arizona, aims to hold Avid Telecom, its owner Michael Lansky, and Vice President Stacey Reeves accountable for their alleged violations of federal and state telemarketing laws.

The lawsuit, which demands a jury trial to determine damages, alleges that Avid Telecom and its executives flagrantly disregarded the Telephone Consumer Protection Act, the Telemarketing Sales Rule, and other consumer protection laws. The gravity of their offenses cannot be understated, as they are accused of employing spoofed or invalid caller ID numbers in their relentless pursuit of unsuspecting victims. Shockingly, over 8.4 million calls were made under the guise of government agencies, law enforcement entities, and reputable private companies.

Arizona Attorney General Kris Mayes, one of the leaders spearheading this legal action, voiced her concerns about the impact of Avid Telecom’s robocall spree. “Every day, countless Arizona consumers are harassed and annoyed by a relentless barrage of unwanted robocalls – and in some instances these illegal calls threaten consumers with lawsuits and arrest,” Mayes declared in a statement. “Such a blatant disregard for consumer protection laws will not be tolerated and violators of these laws will be held accountable.”

The accusations against Avid Telecom are as diverse as they are appalling. Not only did they allegedly inundate individuals with deceptive calls concerning the Social Security Administration, Medicare, Amazon, DirecTV, auto warranties, employment opportunities, and credit card interest rate reductions, but they also persisted despite repeated warnings. The U.S. Telecom-led Industry Traceback Group issued no less than 329 notifications to Avid Telecom, signaling their transmission of illegal robocalls. Nonetheless, the company seemingly turned a blind eye to these warnings and continued its dubious practices.

Avid Telecom, operating as a Voice over Internet Protocol service provider, profited by selling data, phone numbers, dialing software, and expertise to facilitate mass robocalling. Disturbingly, between December 2018 and January 2023, they enabled over 24.5 billion calls, leaving no doubt about the extent of their disruptive and potentially harmful activities.

New York Attorney General James voiced the shared frustration of millions of Americans fed up with fraudulent robocalls. “Seniors and vulnerable consumers have been scammed out of millions because of these illegal robocalls. Today we are suing Avid Telecom for facilitating these annoying and illegal calls and for hurting ordinary Americans,” Attorney General James asserted, illustrating the urgency and determination behind the lawsuit.

Texas Attorney General Ken Paxton echoed the sentiment and vowed to fight against all parties complicit in such scam calls. “If the telecom industry refuses to create and comply with reasonable regulations, then our Task Force will demand compliance,” Paxton proclaimed, emphasizing the determination of the Multistate Litigation Task Force, a bipartisan coalition comprising 51 attorneys general and the District of Columbia, to combat the pervasive robocall problem.

Joining forces with the attorneys general, the Federal Trade Commission and the Social Security Administration’s Office of the Inspector General provided valuable investigative assistance, underscoring the significance of this legal battle.

As the legal proceedings commence, Avid Telecom’s outside legal counsel, Neil Ende, issued a statement in response to the allegations. Ende maintained that Avid Telecom operates in full compliance with all applicable state and federal laws and regulations, denying any wrongdoing. While expressing disappointment in the attorneys general for not engaging in direct communication before initiating the lawsuit, Ende reaffirmed the company’s commitment to defending its reputation and rights through the legal process.

The outcome of this lawsuit will be closely watched, as it holds the potential to set a precedent in the fight against illegal robocalls and safeguard consumers from the incessant harassment and fraudulent schemes that plague their lives. The collective efforts of these attorneys general serve as a reminder that no company can operate above the law, and those who exploit unsuspecting individuals will face the consequences of their actions.