Paypal class action lawsuit - seems legit; is it?

Discussion in 'After Hours Lounge (Off Topic)' started by Jon_Are, Jul 30, 2004.

  1. Jon_Are

    Jon_Are Cinematographer

    Joined:
    Jun 25, 2001
    Messages:
    2,036
    Likes Received:
    0
    I received an email from Paypal providing details of a class action lawsuit brought against them. I'm as cynical as they come, but this sure seems legitimate (I'll paste a portion of the long email at the end of this post).

    It was sent on Paypal "stationery", from this address:
    [email protected]

    Has anyone else received this. Has anyone heard of this being in the works?

    Thanks,

    Jon





    Dear Jon,


    IF YOU OPENED A PAYPAL ACCOUNT BETWEEN OCTOBER 1999 AND JANUARY 2004, YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.


    PLEASE READ THIS NOTICE CAREFULLY.


    UNITED STATES DISTRICT COURT
    NORTHERN DISTRICT OF CALIFORNIA
    SAN JOSE DIVISION

    In re PayPal litigation
    Case No. CV-02-01227-JF (PVT)

    NOTICE OF PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT


    1. WHY DID I GET THIS NOTICE?
    You have been sent this Notice because the records of PayPal, Inc. indicate you are a current or former PayPal account holder. This means you may be eligible to receive a payment from the proposed class action settlement in the lawsuit In re PayPal Litigation, Case No. 02 1227 JF PVT, pending in the United States District Court for the Northern District of California in San Jose. This Notice provides a summary of the terms of the proposed settlement. It also explains the lawsuit, your legal rights under the settlement, what benefits are available to you under the settlement, and how to get them.


    2. WHAT IS A CLASS ACTION?
    In a class action, one or more people, called Class Representatives (in this case Roberta Toher and Jeffrey Resnick), sue on behalf of people who have similar claims. All of these people are members of the Class. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. United States District Judge Jeremy Fogel is in charge of this class action.


    3. WHAT IS THIS LAWSUIT ABOUT?
    In early 2002, Plaintiffs Roberta Toher and Jeffrey Resnick filed separate lawsuits against PayPal, Inc. These two cases were later consolidated into one lawsuit in the United States District Court for the Northern District of California, San Jose Division, entitled In re PayPal Litigation, Case No. CV 02 01227-JF (PVT). The lawsuit alleges that PayPal violated the federal Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. §§ 1693 et seq., including provisions requiring PayPal to supply customers with information about dispute resolution procedures and to follow certain procedures when investigating complaints of unauthorized or incorrect electronic fund transfers. For example, the lawsuit claims that PayPal did not provide account statements in the manner required by the EFTA. The lawsuit further alleges that PayPal has placed inappropriate restrictions or other limits on customers' accounts and engaged in other improper practices. Based on these practices, the lawsuit asserts claims under California state law for conversion, money had and received, negligence, and violations of consumer protection statutes.

    PayPal does not believe that it did anything wrong. In fact, PayPal disputes that the EFTA, originally passed in 1978, applies to its business. PayPal denies any and all liability for the claims alleged in the lawsuit. The Court did not decide in favor of the Plaintiffs or PayPal. Instead, beginning in the fall of 2003, the parties began a series of settlement negotiation sessions mediated by United States Magistrate Judge Edward Infante. Eventually, in November 2003, both sides agreed to a settlement in principle. By settling their claims, both parties avoided the uncertainty and cost of a trial. The settlement provides money and other benefits to the Class. On June 11, 2004, the parties entered into a formal, written Settlement Agreement, which is on file with the Court and available on the Internet at https://www.paypal.com/settlement/. By entering into the Settlement Agreement, PayPal is not admitting any wrongdoing. PayPal continues to believe that it did not do anything wrong. The Representative Plaintiffs and the attorneys appointed by the Court to represent the Class believe that the settlement is fair to Class Members. By this notice, the Court is not expressing any view on the merits of the lawsuit.


    4. HOW DO I KNOW IF I AM PART OF THE SETTLEMENT?
    On July 12, 2004, Judge Fogel entered an order granting preliminary approval of the settlement and certifying the following class for purposes of the settlement: All Persons who opened a PayPal account during the period from October 1, 1999 through January 31, 2004. Excluded from the class are any judicial officer to whom the lawsuit is assigned; PayPal and any of its affiliates; any current or former employee, officer, or director of PayPal; anyone who resides in Austria, Belgium, Denmark, Germany, Greece, Finland, France, Ireland, Italy, Luxembourg, Portugal, Spain, Sweden, The Netherlands, or United Kingdom; and all persons who timely and validly request exclusion from the class pursuant to this notice.

    Thus, if you opened a PayPal account between October 1, 1999 and January 31, 2004, and are not one of the excluded persons listed above, you are a member of the class.


    5. WHO REPRESENTS ME IN THIS CASE?
    To represent the class, the Court has appointed Plaintiffs Roberta Toher and Jeffrey Resnick as Representative Plaintiffs and their counsel of record as Class Counsel. The Court has also appointed the following attorneys and law firms as Co-Lead Counsel:


    A. J. De Bartolomeo
    Girard Gibbs & De Bartolomeo LLP
    601 California Street, Suite 1400
    San Francisco, California 94108

    Robert C. Finkel
    Wolf Popper LLP
    845 Third Avenue
    New York, New York 10022


    AND, AT THE END OF THE EMAIL:


    To modify your notification preferences, go to https://www.paypal.com/PREFS-NOTI and log in to your account. PayPal will not sell or rent any of your personally identifiable information to third parties. For more information about the security of your information, read our Privacy Policy at https://www.paypal.com/privacy. Replies to this email will not be processed. Copyright© 2004 PayPal, Inc. All rights reserved. Designated trademarks and brands are the property of their respective owners. PayPal is located at 2211 N. First St., San Jose, CA 95131.
     
  2. Christ Reynolds

    Christ Reynolds Producer

    Joined:
    May 6, 2002
    Messages:
    3,597
    Likes Received:
    0
    Real Name:
    CJ
    i got one too, seems legit to me. i hate reading legalese.

    CJ
     
  3. Carl Johnson

    Carl Johnson Cinematographer

    Joined:
    May 6, 1999
    Messages:
    2,259
    Likes Received:
    25
    Real Name:
    Carl III
    I got that notice too but there was more legal mumbo jumbo attached. If I read it right it said something about having a claim if your grievance against Paypal between x and y dates was declined. If I'm wrong and everybody who held a Paypal account between those dates is entitled to settlement money then I'd like to know........
     
  4. Malcolm R

    Malcolm R Executive Producer

    Joined:
    Feb 8, 2002
    Messages:
    13,078
    Likes Received:
    765
    Real Name:
    Malcolm
    I got it. I've never had any issues/problems with PayPal, so I don't think I'm entitled to anything since I have nothing to base a claim on.
     
  5. Wayne Bundrick

    Wayne Bundrick Cinematographer

    Joined:
    May 17, 1999
    Messages:
    2,358
    Likes Received:
    0
    Yeah, you have to read what it says, unfortunately.

    There are two types of claims, the statutory damage claim, and the dispute resolution claims. The dispute resolution claim you can file if you experienced the problems described (unauthorized or incorrect transfers, etc.). If you file the short form, you get up to $50 depending on how many other people also file. If you file the long form and document the problems you had, you may get more depending on how much of a case against PayPal you have.

    But as far as I can tell, everyone (in the qualifying countries) who opened a PayPal account between October 1, 1999 and January 31, 3004 is eligible for the statutory damage claim. $1 million will be divided equally among everyone who files the statutory damage claim. So you'll probably get less than a dollar.
     
  6. JustinCleveland

    JustinCleveland Cinematographer

    Joined:
    Dec 23, 2002
    Messages:
    2,059
    Likes Received:
    0
    Location:
    Madison, WI
    Real Name:
    Justin Cleveland
    9.5 million dollar settlment, lawyers get 3.25 of that. Gee, who wins in this? Not the consumer.

    Yeah, it's legit, snopes did a piece on it yesterday.
     
  7. LewB

    LewB Screenwriter

    Joined:
    Feb 11, 2002
    Messages:
    1,282
    Likes Received:
    0

Share This Page