The DNS settlement resolves a class action against Direct Network Services over telemarketing calls that allegedly violated the Telephone Consumer Protection Act. If the company called your cell phone or landline with a prerecorded message or automated dialer between July 1, 2016 and July 31, 2021, you can file a claim for a share of the fund. Individual payouts in TCPA settlements like this one generally land somewhere between $20 and $150, depending on how many people file.
Who Qualifies
You are a class member if you received one or more telemarketing calls from Direct Network Services between July 1, 2016 and July 31, 2021. The class covers calls placed through an automated dialing system and calls made to numbers listed on the National Do Not Call Registry. The call had to be a telemarketing call to a cell phone or residential landline.
A few people are excluded even if they got calls. The company’s officers, directors, and employees cannot file. Neither can the attorneys who worked on either side, the presiding judge, or that judge’s immediate family. Anyone who already submitted a written exclusion request during the earlier notice period is also out.
What You Need Before You File
Pull together a few things first. The settlement notice you received by mail or email should list a Notice ID and Confirmation Code. If you cannot find yours, the settlement administrator can look you up by phone number. Have ready:
- The phone number that received the calls
- Your full legal name, current mailing address, and email
- A phone bill or service contract from the relevant period, in case the form asks you to document ownership of the line
The phone number is the piece that matters most. The administrator matches what you enter against the company’s internal call records, and a mismatch is the fastest way to get a claim rejected. The form also includes checkboxes confirming you were the primary subscriber on the line during the covered dates, and in some situations it asks for a signed statement under penalty of perjury that you were the person who received the calls.
How to File
Fill in every required field before submitting. Incomplete forms trigger a deficiency notice, which adds weeks of correspondence before your claim moves forward.
Online
Complete the form on the settlement administrator’s website and submit. The confirmation screen displays a claim number. Save it, screenshot it, or print it. If a dispute arises about whether you filed, that number is your proof.
By Mail
Send the completed form to the administrator’s address listed on your notice. Use certified mail so you have a tracking number. The postmark date is what the court looks at, and late submissions are rejected regardless of how strong the claim is. Do not wait until the last day.
When You Get Paid and How Much
The administrator reviews every submission to weed out duplicates and fraud, cross-referencing your phone number against the company’s records and the Do Not Call Registry. If something does not check out, you may get an email or letter asking for more information.
No money goes out until the court holds a final fairness hearing and approves the settlement. A mandatory appeal window follows that approval. In practice, TCPA class action settlements of this type distribute funds roughly six to nine months after final approval.
The court first deducts approved attorney fees and administrative costs from the total fund. Attorney fees in class actions typically run between 25% and 33%. The remainder is split equally among valid claimants on a pro rata basis, so the fewer people who file, the larger each share. Payment usually comes as a mailed check or a digital transfer through a service like PayPal or Venmo. Check the administrator’s website for the exact options in this case.
Objecting or Opting Out
You have two different choices if the settlement does not sit right with you, and they lead in opposite directions.
An objection stays inside the case. File it in writing with the court before the deadline on your notice, explain why you think the settlement is inadequate, and appear at the fairness hearing if you want to argue the point in person. If the judge approves the deal anyway, you still get your share.
Opting out takes you out of the class entirely. You lose your settlement payment but keep the right to sue Direct Network Services on your own. Under the TCPA, individual claims can be worth $500 per illegal call, or $1,500 per call if the violations were willful.1Office of the Law Revision Counsel. 47 USC 227 – Telephone Consumer Protection Act For someone who received dozens of calls, that math may be worth running with a lawyer. For a handful of calls, the guaranteed settlement payment is almost always the better deal.
You cannot do both. Opting out ends your standing to object; objecting keeps you in the class.
Taxes on the Payment
TCPA settlement payments are generally taxable income. The IRS treats all income as taxable unless a specific code section excludes it, and the main exclusion, for damages tied to personal physical injuries or sickness, does not reach privacy claims like this one.2Internal Revenue Service. Tax Implications of Settlements and Judgments Report the payment as income on your return for the year you receive it.
If your payout exceeds the reporting threshold, the administrator will send you a Form 1099. Even without a 1099, the IRS still considers the money taxable. On a payment in the $20 to $150 range the tax is small, but leaving it off entirely can draw a notice later.
Avoiding Settlement Scams
A legitimate settlement administrator will not ask for your Social Security number on an initial claim form and will never ask you to pay a fee to file. Anyone demanding money upfront or asking for sensitive financial details beyond a mailing address is running a scam. File through the official settlement website printed on your court-approved notice, not through a link in an unsolicited email or text.