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Joe
Van Leer,
Sentinel Correspondent
Posted 8:36 am EDT
on August 2, 2006
WEST PALM BEACH, Fla. -- More than 500,000 Florida motorists could get compensation under a $50 million class-action settlement over the alleged illegal purchase of their motor vehicle records by a bank from the state government.
Paul Geller, an attorney representing the motorists, confirmed that Fidelity Federal Bank & Trust of West Palm Beach had agreed to settle the case. The agreement received preliminary approval from a judge, but still final approval.
The bank allegedly violated federal anti-stalking legislation, which prohibits companies from buying driver records from state governments, when it purchased the records of 565,000 motorists, The Palm Beach Post reported
The motorists could each get up to $160 each under the settlement, Geller confirmed.
"The bank has always denied and continues to deny liability," Geller said. "The settlement reflects the party's decision to end the risk, uncertainty and costs of further litigation."
An agreement with defense attorneys prevented Geller from elaborating, but he said he could confirm details of the settlement.
Geller presented the settlement to a judge Monday. Final approval of the agreement hinges on the acquisition of the bank by National City Corp. of Cleveland.
The bank agreed to the settlement after taking the case to the U.S. Supreme Court, which declined to hear the case in March.
A message left after hours Tuesday by The Associated Press at Fidelity Federal Bank & Trust was not immediately returned.
An attorney for the bank didn't know that buying the names violated federal law and would have continued to fight had it not been bought by National City Corp.
Geller said it is still possible for the bank to sue the state for giving them the names.
The affected motorists live in Palm Beach, Martin, St. Lucie and Broward counties. Between 2000 and 2003 the bank paid the Florida Department of Highway Safety and Motor Vehicles a penny a name for the names and addresses of motorists who recently bought cars and used the information to send out send brochures advertising auto loans.
Attorneys alleged the bank violated the Driver's Privacy Protection Act in obtaining the names. The law was passed after the 1989 murder of TV actress Rebecca Schaeffer, whose stalker was able to track her down using motor vehicle records. The law allows for penalties of up to $2,500 per violation.
The $50 million settlement includes $10 million in attorneys fees that would be shared by Geller's firm, Lerach Coughlin Stoia Geller Rudman & Robbins, and three other firms.
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Copyright 2006 by The Associated Press. All rights reserved. .
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