June 6, 2023

WASHINGTON (Reuters) – XCast Labs, a company accused of helping make billions of illegal robocalls, was sued on Friday by the US Federal Trade Commission, which has asked the court to order the company to stop the practice.

Voice over Internet Protocol (VoIP) provider XCast is accused of helping other companies, at least one of which falsely claimed to be a government agency, contact people on the National Do Not Call register and generally trick them into making purchases or contributions, the lawsuit said.

The FTC asked for an undetermined amount of fines.

“XCast Labs played a key role in helping telemarketers flood homes with illegitimate robocalls, including robocalls posing as the Social Security Administration,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.

XCast representatives did not immediately respond to requests for comment.

The Justice Department filed the case in California District Court on behalf of the FTC.

(Reporting by Diane Bartz and Mike Scarcella; editing by Bill Berkrot)