In one of the first cases of its kind, a settlement has been achieved in the US aimed at protecting mobile phone users against receiving unsolicited commercial text messages – also known as SMS spam.

Verizon Wireless yesterday announced it has reached a settlement with Acacia National Mortgage Company that stops the lender from sending repeated, unsolicited commercial text messages to Verizon’s mobile phone customers.

In response to customer complaints, Verizon Wireless had filed a lawsuit against Acacia in Denver District Court, Colorado, challenging the company's practice of sending repeated, unsolicited text messages. According to the lawsuit, Acacia had failed to comply with demands to stop the practice.

Verizon’s challenge was based on the Colorado Junk Email Law. The lawsuit is believed to be the first in Colorado to invoke the State's junk e-mail legislation to protect text messaging service for wireless phone customers.

Full terms of the settlement were not disclosed.

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