July 22, 2014 3:48 PM ET

Internet and Catalog Retail

Company Overview of 1-800 CONTACTS, Inc.

Company Overview

1-800 CONTACTS, Inc. engages in the online retail of lenses for consumers in the United States. It provides daily disposables, toric lenses, color lenses, bifocal lenses, and eye care solutions; and glasses. The company sells products through phone, Internet, mail, or fax. 1-800 CONTACTS, Inc. was founded in 1995 and is headquartered in Orem, Utah. 1-800 CONTACTS, Inc. is a former subsidiary of WellPoint Inc.

51 West Center Street

Orem, UT 84020

United States

Founded in 1995

1,101 Employees

Phone:

801-924-9900

Fax:

801-924-9923

Key Executives for 1-800 CONTACTS, Inc.

Co-Founder
Age: 44
President
Age: 52
Co-Founder
Age: 53
Chief Financial Officer
Age: 47
Vice President of Operations
Compensation as of Fiscal Year 2014.

1-800 CONTACTS, Inc. Key Developments

1-800 CONTACTS, Inc. Breaks Ground on New Corporate Headquarters Facility in Draper, Utah

1-800 CONTACTS, Inc. announced it will be constructing a new corporate headquarters facility in Draper, Utah. The Company anticipates completion and occupancy of the new facility in July 2015, which will be located in the Draper Pointe development, just west of Interstate 15 and north of Bangerter Highway. Gardner Company and The Boyer Company are the developers of Draper Pointe, and are leading the development process for the five-story, 125,000 square-foot facility. They have selected L&T Construction for the construction of both the exterior and interior of the new facility. Rapt Studio will help the company create the new headquarters, which will uniquely reflect the brand and culture of 1-800 CONTACTS. Upon completion, 1-800 CONTACTS will immediately occupy 100,000 square feet, and anticipates business development initiatives will allow the company to expand to all floors of the facility in the future.

1-800 Contacts Inc. Announces $11.7 Million Settlement Agreement

The U.S. District Court for the Southern District of California held that a settlement agreement reached between a consumer and a retailer in a suit alleging violations of the California Invasion of Privacy Act was fair, adequate and reasonable based on several factors. The recovery for each valid claim was one of those factors. Robert Reed brought a class action lawsuit against 1-800 Contacts Inc., alleging violation of the California Invasion of Privacy Act. Specifically, Reed contended 1-800 Contacts intentionally recorded confidential telephone calls with California consumers without their consent. 1-800 Contacts agreed to pay $11.7 million in exchange for a release of claims. Reed filed a motion for final approval of the settlement agreement and an award of attorneys fees. The district court observed the parties had not completed discovery, briefed the class certification issue or filed any dispositive motions. Denial of the motion for final approval would necessarily result in the parties expending significant time and expense litigating. The settlement agreement provided certain relief without delay. The risk of maintaining a class action throughout a trial favored approval. 1-800 Contacts indicated it would raise several arguments against class certification, including that individual issues of consent and expectation of privacy predominated over issues common to the class. The settlement presented a good recovery for the class. Each class member who submitted a valid claim would receive a net payment of $606.56, which was more than the recovery in other class actions. The reaction of the class to the settlement agreement was favorable. The settlement administrator mailed notice to 99,884 potential class members. Only 49 class members requested exclusion from the settlement. No class member filed an objection. Class counsel requested attorneys fees of $2.925 million, or 25% of the settlement amount. The district court found the hourly rates of counsel were reasonable in light of the experience of the attorneys and the results they obtained for the class. The difference between the requested fees and the lodestar value for the time class counsel spent in the case reflected a multiplier of 2.9. The district court determined the multiplier did not appear unreasonable. Class counsel took the case on a contingency fee basis. The case would have been vigorously contested and lengthy absent a settlement. The district court granted the motion for final approval and awarded $2.925 million in attorneys fees. Additionally, the court granted the unopposed request for an enhancement award of $10,000 for Reed.

1-800 Contacts Names Tim Roush as Chief Marketing Officer

1-800 Contacts, Inc. announced that Tim Roush has been named chief marketing officer. In this role, Roush will be responsible for leading all marketing initiatives and partnering with 1-800 CONTACT's leadership team to drive profitable growth. Roush is a marketing veteran who has more than 20 years experience and a proven track record of success in corporate strategy, sales, marketing and product development. He most recently served as chief executive officer for Creta Farms USA where he was responsible for the re-launch of the business in the United States, developing brand position and marketing plans.

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
January 7, 2014
--
Merger/Acquisition
January 7, 2014
1-800 CONTACTS, Inc., Glasses.com and Related Virtual Try-On Technology
 

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