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Why the L.A. Lakers lacked coverage for TCPA violations

Lawsuits alleging TCPA violations have become relatively commonplace. Here's why one such suit against the Los Angeles Lakers was not covered by the team's D&O policy.

By Karin S. Aldama | Updated on October 13, 2017
In August, the U.S. Court of Appeals for the Ninth Circuit ruled against the Los Angeles Lakers after the basketball team sued to force its insurer to defend a Telephone Consumer Protection Act lawsuit. Here, Lakers guard Lonzo Ball stands on the court during the first half of the team's preseason NBA basketball game against the Denver Nuggets. (AP Photo/Mark J. Terrill)

Lawsuits alleging violations of the Telephone Consumer Protection Act (“TCPA”) based on allegedly unsolicited text messages have become relatively commonplace.

Such lawsuits often lead to coverage actions in which the sender of texts seeks to recover costs related to the lawsuit from its insurer, often under Directors and Officers (D&O) policies. Courts have been less than uniform in addressing these coverage issues.

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