Nutrisystem Wins Federal Phone Privacy Lawsuit

Categories: Court

Nutrisystem altered phone warning policy
In August 2012, California resident Raquel Torres called Nutrisystem's toll-free 800 number and engaged in a "sensitive, private and confidential discussion" with one of the weight-loss company's employees, according to a federal lawsuit.

Torres felt so comfortable that she provided her social security number because Nutrisystem did not advise her that the Pennsylvania-based business records all of its calls.

Using two powerhouse Orange County law firms--Callahan & Blaine, and Scott J. Ferrell's Newport Trial Group, Torres sued, claiming that Nutrisystem violated California law banning the secret recording of telephone calls.

But the case met a monumental opponent inside the Ronald Reagan Federal Courthouse in Santa Ana: U.S. District Court Judge Cormac J. Carney.

Carney refused in April to grant class-action status to the complaint for likely thousands of California residents who may have been secretly recorded by Nutrisystem.

In his ruling, the judge noted that the company had altered its policies to ensure all callers are informed they are being recorded.

Carney's decision, which equated to no potential for a meaningful, financial settlement, led this past week to Torres' lawyers asking to voluntarily dismissing the lawsuit.

On July 3, Carney formally closed the case.

According to court records, both sides will pay their own legal expenses.

Manatt, Phelps & Phillips successfully represented Nutrisystem.

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Email: rscottmoxley@ocweekly.com. Twitter: @RScottMoxley.

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3 comments
OCLocal
OCLocal

Why are Jillian's shoes so big on her?? WHY??? sorry, that is all I got out of this story. And who in their right mind would give nutrisystem their SS#?

JGlanton
JGlanton topcommenter

"I'm fat and stupid and I give my social security number to strangers on the phone. I'm going to sue anybody that makes me feel dumb".

She's a keeper.

JBinOC
JBinOC topcommenter

As if advertising in OC Metro magazine wasn't enough to make someone doubt your credentials, Callahan and Blaine...which won "the largest settlement in Orange County history"...just got trounced by the company that helped Marie Osmond lose 50 pounds.  Woops! 

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