Cady Studios Lawsuit: Wage, TCPA, and BBB Complaints

Cady Studios, the Georgia-based school photography company, has been named in at least four lawsuits since 2016, including a Fair Labor Standards Act class action brought by a former photographer, a family’s suit over an exposed photo of a minor posted to the company’s website, a Telephone Consumer Protection Act class action, and a business dispute filed by Balfour’s parent company. The Cady Studios lawsuit history also sits alongside more than a hundred consumer complaints logged with the Better Business Bureau. Here is what each case involved and how it ended.

Merbaum v. Cady Studios: Photographer Wage Class Action

In December 2016, former Cady photographer Ethan Merbaum filed a proposed class action in the U.S. District Court for the Northern District of Georgia, alleging the company paid photographers less than the $7.25 federal minimum wage once vehicle expenses were factored in.1ClassAction.org. Cady Studios Slapped With Class Action Lawsuit

The complaint focused on Cady’s mileage reimbursement formula, which calculated payments using miles driven divided by a vehicle’s window-sticker mileage, multiplied by the price of a gallon of gas. Merbaum argued the formula covered only fuel and ignored depreciation, insurance, and repairs, producing a rate well below the IRS business mileage rate and pushing effective wages under the federal floor.2ClassAction.org. Merbaum v. Cady Studios Complaint

The case settled before trial. On October 23, 2017, Judge Thomas W. Thrash, Jr. approved the settlement and dismissed the case with prejudice. Terms were not made public.3CourtListener. Merbaum v. Cady Studios, LLC

Suit Over an Exposed Photo of a Minor

In May 2018, a Georgia mother sued Cady Studios after the company posted a photograph of her 15-year-old daughter on its website that showed a wardrobe malfunction from a school dance, leaving the teen partially exposed. The family alleged negligence and intentional infliction of emotional distress and sought multi-million-dollar punitive damages.4PetaPixel. Mom’s Multi-Million Lawsuit: Photog Posted Indecent Photo of Girl at Dance

Attorney Chris Stewart called the posting “inexcusable.” Cady removed the image after the school district flagged it and sent the family an emailed apology.5WSB-TV. Teen’s Wardrobe Malfunction at School Dance Ends Up on Photographer’s Website The available record does not show a final ruling or a publicly disclosed settlement.

Traynham v. Cady Studios: TCPA Telemarketing Class Action

Melissa Traynham filed a putative class action against Cady in the U.S. District Court for the Middle District of Florida in January 2024, alleging the company violated the Telephone Consumer Protection Act, which restricts automated calls and unsolicited marketing messages. An amended complaint followed in April 2024.6PACER Monitor. Traynham v. Cady Studios, LLC

The case settled that fall. Traynham filed a notice of settlement on September 30, 2024, and Judge Wendy W. Berger dismissed the case and denied pending motions as moot the next day. A stipulation of dismissal was filed October 21, 2024. Settlement terms were not disclosed.

American Achievement Corp. v. Cady Studios: Balfour’s Business Dispute

In April 2023, American Achievement Corporation, which does business as Balfour, filed a verified complaint against Cady Studios in the Circuit Court of Palm Beach County, Florida. The Delaware corporation, based in Austin, Texas, brought the suit over a business dispute involving student photography and yearbook services.7Trellis.law. American Achievement Corporation v. Cady Studios LLC, Complaint

Balfour sought temporary and permanent injunctive relief plus damages exceeding $50,000, along with costs, interest, and attorney fees. The most recent available records show the case still open before Judge Scott R. Kerner.

Consumer Complaints Filed With the BBB

Outside court, Cady’s Better Business Bureau profile lists 119 complaints over the past three years, with 51 in the most recent 12-month period. The company is not BBB-accredited and holds a B+ rating.8Better Business Bureau. Cady – BBB Business Profile The complaints cluster around a few issues:

  • Physical prints arriving with a prominent corporate logo in the corner. Customers say the watermark was not visible during online checkout. Cady calls it a “standard copyright feature” and an “intended design,” and directs customers to higher-priced digital packages that include a print release for clean images.
  • Cap-and-gown graduation photos that customers say staff described as included in prepaid digital packages. Cady responds that cap-and-gown portraits are a separate product, citing signed terms and conditions.
  • Lost or missing shipments, with the company requiring a 21-day wait before processing replacements.

Cady generally refuses full refunds on digital products under an “all sales are final” policy, arguing digital images cannot be returned once delivered. In disputed cases the company has offered partial refunds or goodwill discounts. Of the 119 complaints, the BBB categorized 96 as “answered,” 20 as “resolved” to the customer’s satisfaction, and 3 as unresolved.9Better Business Bureau. Cady – Customer Complaints