PayPal Class action Lawsuit?

[Felix The Assassin]

Ironworks Members.

As most ofyou know I'm seperated from the home front conducting Operation 'Yellow Rose' in support of IF2.5.. Anywho, my wife received a e-mail from the state of California, or so it appears. It was sent directly to her, which is also the same e-mail she is registered on Paypal with and the state in which we were posted when she joined. Anywho, it talks about a class action lawsuit against Paypal etc.. The link appears to go to both Paypal, and the district area in Cali. It does not ask for user name or password etc.

Is this the new level of scams? Or is there actually a lawsuit going down.

Tanks,
Felix

[Ronn_Bman]

I'm not sure if your wife's email is a scam, but there was a class action suit against PayPal that has been settled. Check out some details here.

[Timber Loftis]

If it's legit, it will spell out the terms of the settlement, what conditions you need to fit (e.g. account frozen between X and Y dates, or maybe even just being a PayPal member during X dates), and what recovery you will get. It will specify where to reply to, and will probably give you contact information, even if it's just a call-in number for a clearing house.

[SpongeBobTheDestoyer]

I got one of those too. I thought it was a scam too, but after checking out that sight I am going to have to go back and read the e-mail more carefully. I just get confused with all that legal mumbo jumbo. Hopefully it's legit.

[Dundee Slaytern]

I use Paypal, and I got no such e-mail. If you really want to verify it, go to the Paypal website-

DO NOT USE THE LINKS IN THE E-MAIL!

-and report the e-mail to them. Paypal will usually reply by the next working day. That is my usual response to such dubious e-mail.

[Cloudbringer]

I haven't seen any mail like that but it could have been a local suit in CA or something.

[Felix The Assassin]

Tanks for the advice guys.
This thing is long and very wordy. It was addressed directly to her, and had her exact name as on Paypal. All of the links from the email work, etc.

I will have her query Paypal and wait for the outcome.

>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. E 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
>
>6. WHAT DOES THE SETTLEMENT PROVIDE?
>
>A. Injunctive Relief
>The settlement requires that PayPal consent to the entry of an order,
>called an injunction, that mandates various changes to PayPal's
>business practices. PayPal has already implemented these changes. The
>injunction includes PayPal's agreement to comply with certain notice
>and error resolution procedures of the EFTA, and to follow certain
>procedures for limiting accounts and responding to and returning funds
>to customers whose accounts have been limited. A copy of this
>injunction can be found as Exhibit D to the Settlement Agreement,
>entitled
>"Form of Injunctive Order."
>
>B. Monetary Relief
>Under the settlement, PayPal will pay $9.25 million into a settlement
>fund, to be held in an interest-bearing account. The fund will be used
>(1) to make payments to class members who submit valid claims before
>the claims deadline; (2) to pay certain costs of giving notice to the
>Class and of settlement administration, as approved by the Court; and
>(3) to pay attorneys' fees and expenses to Class Counsel in the amount
>awarded by the Court. Class Counsel have proposed that, after deduction
>of notice and administrative costs and Class Counsel's attorneys' fees
>and expenses, the balance of the fund ("Net Settlement Fund") be
>applied in accordance with a written plan of allocation. (The following
>explanation is qualified in its entirety by reference to the Plan of
>Allocation attached to the settlement Agreement as Exhibit C, a copy of
>which is on file with the Court and available on the Internet at
>https://www.paypal.com/settlement/.)
>
>
>1. Certain Definitions
>Certain capitalized words are used in this part of the Notice to
>describe the way in which the Net Settlement Fund will be allocated.
>These capitalized words have the following meanings: (a) "Released
>Persons" means PayPal and its past and present partners, affiliates,
>predecessors, successors, assigns, parents, subsidiaries, officers,
>directors, attorneys, and employees.
>
>(b) "Fund Claimants" are class members who submit timely, valid claims
>in accordance with the procedures described in this notice.
>
>(c) "Dispute Resolution Claimants" are Fund Claimants who contend
>that, prior to February 1, 2004, they:
>
>(i) experienced or reported to PayPal an unauthorized or incorrect
>electronic transfer to or from their PayPal account including, without
>limitation, electronic transfers initiated by (a) the Fund Claimant;
>(b) PayPal in connection with, among other things, chargebacks,
>refunds, buyer complaints, PayPal's Seller Protection Policy, Buyer
>Complaint Process and/or Buyer Protection Policy; or (c) any third
>party;
>
>(ii) had access to their PayPal account improperly, incorrectly or
>erroneously limited or restricted, in whole or in part;
>
>(iii) made a request for information in connection with PayPal's
>restriction or limitation of the Fund Claimant's PayPal account or
>regarding an incorrect or unauthorized electronic transfer to which
>PayPal did not respond at all or did not respond to the Fund Claimant's
>satisfaction. (d) "Statutory Damage Fund Claimants" are all Fund
>Claimants who are not Dispute Resolution Claimants.
>
>2. Statutory Damage Fund Claimants
>The plan of allocation designates $1 million of the Net Settlement
>Fund to a "Statutory Damage Fund," to be distributed equally among all
>Fund Claimants who are not Dispute Resolution Claimants. This means
>that
>if you are a member of the Class and do not fall within the definition
>of
>a "Dispute Resolution Claimant," as set out above, you can make a
>claim for a payment from the Statutory Damage Fund. The Statutory
>Damage Fund provides compensation for potential statutory damages under
>the Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. E 1693 et seq.
>Statutory damages under the EFTA are limited by law to no more than
>$500,000 for any class of individuals claiming "the same failure to
>comply." Plaintiffs' counsel contended in the litigation and for
>purposes of settlement that PayPal was potentially liable for multiple
>failures to comply, a position PayPal vigorously opposed.
>
>The Statutory Damage Fund Claim Form requires you to provide certain
>identifying information and sign a statement under penalty of perjury
>authenticating your claim, which may be subject to verification by
>PayPal's records. To make a claim for payment from this fund, please
>complete and submit the Statutory Damage Fund Claim Form available on
>the Internet at https://www.paypal.com/settlement/ in accordance with
>the instructions on the form.
>
>3. Dispute Resolution Claimants
>The balance of the Net Settlement Fund will be allocated for
>distribution to Dispute Resolution Claimants. If you fall within the
>definition of a "Dispute Resolution Claimant," as set out above, you
>have the right to make a Dispute Resolution Claim. You can choose to
>submit either the Short Claim Form or the Long Claim Form available on
>the Internet at https://www.paypal.com/settlement/. If the Court awards
>attorneys' fees and costs in the amount requested, Class Counsel
>estimate that there will be approximately $4.3 million to pay the
>claims of Dispute Resolution Claimants. Half of the money allocated to
>Dispute Resolution Claimants will be allocated to pay Short Form
>Claimants (the "Short Form Fund"). The other half will be allocated to
>pay Long Form Claimants (the "Long Form Fund").
>
>a. Short Form Claimants
>The Short Claim Form requires you to provide certain identifying
>information and sign a statement under penalty of perjury, which may
>be verified using PayPal's records, that you experienced an
>unauthorized or incorrect electronic transfer or an account limitation
>or denial of access to your account. If you make a timely, valid claim
>using the Short Claim Form, you will receive a payment of $50, unless
>the amount needed to pay all of the Short Form claims exceeds the Short
>Form Fund. In that case, the Short Form Fund will be divided equally
>among all Short Form Claimants. If the amount needed to pay all of the
>Short Form claims is less than the amount of the Short Form Fund, the
>money left over will be added to the Long Form Fund.
>
>b. Long Form Claimants
>The Long Claim Form requires you to provide certain identifying
>information; give the details of the account restriction(s) and/or
>unauthorized electronic fund transfer(s) you experienced; state the
>amount of your claim, and sign a statement, under penalty of perjury,
>which may be subject to verification by PayPal's records, that you
>actually suffered the claimed damages. You should also provide any
>documentation you have that will support your claim, as explained in
>more detail on the Long Form.
>
>If you make a timely, valid claim using the Long Claim Form, an
>independent, court-approved claims administrator will evaluate your
>claim and determine the amount you should receive. In making this
>determination, the claims administrator will take into account the
>amount of damages you claim; the nature of your complaint; the quality
>of the supporting documentation you provide; your recoverable damages;
>the probability that you would be successful on your complaint; and
>such other factors that the claims administrator considers relevant.
>If the amount needed to pay all of the Long Form claims is less than
>the amount of the Long Form Fund, the money left over will be added
>to the Short Form Fund.
>
>c. Balance after payment of Long Form and Short Form Claimants
>If there are sufficient funds to pay all Short Form and Long Form
>Claimants in full in accordance with the written plan of allocation,
>any remaining funds will be divided equally among all Dispute
>Resolution Claimants to supplement their recoveries.
>
>7. HOW DO I MAKE A CLAIM AND GET A PAYMENT?
>To make a claim for payment, please complete one of the claim forms
>(Statutory Damage Claim Form, Short Claim Form, or Long Claim Form)
>available on the Internet at https://www.paypal.com/settlement/. To
>make a valid claim, you will need to (1) fill out the claim form
>electronically and (2) print the signature page of your claim form,
>sign it and return it by mail to the address provided on the claim
>form. You must complete the claims procedure no later than October
>23, 2004. Your payment will be transferred electronically to your
>PayPal account. If you do not have a current, unrestricted PayPal
>account or you indicate on the claim form that you prefer to receive
>a check, payment will be made in the form of a check, sent by first
>class mail to the address provided on the claim form. If you are paid
>by check, a $1.00 charge will be deducted from your payment to cover
>the cost of issuing and mailing the check. The claims administrator
>will not issue checks for less than $1.00. Such amounts will instead
>be reallocated to those claimants who are entitled to receive
>distributions.
>
>
>8. WHAT AM I GIVING UP IF I PARTICIPATE IN THE SETTLEMENT?
>If you do not exclude yourself from the class and the settlement is
>granted final approval, the judgment entered upon approval of the
>settlement will dismiss the lawsuit with prejudice, and will release
>any and all claims, demands, rights, liabilities, and causes of
>action of every nature and description whatsoever, known or unknown,
>matured or unmatured, at law or in equity, existing under federal or
>state law, that were or could have been asserted in the Litigation
>against the Released Persons, including without limitation, claims
>under the Electronic Fund Transfer Act, California Business and
>Professions Code E 17200 et seq.; the California Consumers Legal
>Remedies Act, Cal. Civ. Code E 1750 et seq.; and for PayPal's alleged
>conversion, breach of the User Agreement or other contract, money
>had and received, unjust enrichment, and negligence under California
>law or any other state or federal law arising out of, among other
>things, PayPal's restriction or limitation of accounts; PayPal's
>dispute resolution policies, practices and procedures; PayPal's
>debit of accounts following the receipt of chargebacks, buyer
>complaints, reports of unauthorized access or in connection with
>its Seller Protection Policy, Buyer Complaint Process or Buyer
>Protection Policy; PayPal's alleged conversion of funds; and PayPal's
>compliance with the Electronic Fund Transfer Act, 15 U.S.C. E 1693
>et seq., or any similar legislation arising under the laws of any
>state. You will be permanently barred from bringing any such claims
>that arose prior to February 1, 2004. With regard to accounts that
>were limited prior to February 1, 2004, however, you will not be
>releasing claims to recover any balance that remained in the account
>180 days after the account was initially limited.
>
>In summary, if you do not exclude yourself, you will not be able to
>sue, continue to sue, or be part of another lawsuit against PayPal
>relating to the legal issues in this case. You will be bound by all
>proceedings, orders, and judgments entered in connection with the
>settlement, whether favorable or unfavorable, and will be represented
>by the Representative Plaintiffs and Class Counsel for purposes of the
>settlement. If you do not exclude yourself from the class, and the
>settlement is granted final approval, your claims against PayPal and
>its affiliates will be released as described above. If you are a class
>member, you may, if you wish, appear in this lawsuit through your own
>attorney at your own expense. You need not do so to participate in the
>settlement, however.
>
>
>9. WHAT IF I WANT TO EXCLUDE MYSELF (OPT-OUT) FROM THE SETTLEMENT?
>If you do not want to remain a member of the class and participate in
>the settlement, then you must mail or deliver (email is not considered
>adequate), such that it is RECEIVED on or before September 7, 2004,
>(1) an original written, signed request for exclusion to Co-Lead
>Counsel at the following address:
>
>Co Lead Counsel:
>PayPal Class Action Settlement
>A. J. De Bartolomeo
>Girard Gibbs & De Bartolomeo LLP
>601 California Street, Suite 1400
>San Francisco, California 94108
>and (2) a copy of the written signed request to PayPal's counsel at
>the following address:
>
>PayPal's counsel:
>PayPal Class Action Settlement
>Morgan Lewis & Bockius LLP
>One Market
>Spear Street Tower
>San Francisco, California 94105
>This request for exclusion must contain your name and address; be
>signed by you; and include the reference "In re PayPal Litigation,
>Case No. CV-02-1227-JF (PVT)."
>
>If you exclude yourself from the class, you will not participate in
>the settlement and cannot receive any payment from the settlement.
>Your claims will not be released.
>
>
>10. HOW WILL THE LAWYERS FOR THE CLASS BE PAID?
>From the inception of the litigation in early 2002 to the present,
>Class Counsel have not received any payment for their services in
>prosecuting the case, nor have they been reimbursed for any
>out-of-pocket expenses. If the Court approves the proposed settlement,
>Class Counsel will make a motion to the Court for an award of
>attorneys'
>fees of up to $3,332,500 and reimbursement of expenses of up to
>$135,000, to be paid from the $9.25 million settlement fund. Class
>Counsel will also seek reimbursement from the settlement fund on behalf
>of certain of the named plaintiffs in the litigation for reimbursement
>of their expenses related to their service as class representatives in
>the litigation, in an aggregate amount not to exceed $15,000. The
>motion will be heard at the settlement hearing described below in
>Section 11.
>
>Class Counsel's motion for an award of attorneys' fees and
>reimbursement of expenses is based on various factors that include the
>benefits obtained for the class through litigation. These benefits
>include the $9.25 million cash settlement and PayPal's agreement to the
>injunctive relief requirements. In addition, certain changes to
>PayPal's business practices are attributable in part to this litigation,
>including PayPal's decision to undertake to return to its customers
>approximately $5.1 million in those accounts to which access was
>limited for 180 days or more; modifications to PayPal's arbitration
>provision in its User Agreement and its replacement with a clause that
>limits PayPal's ability to compel arbitration where the total amount of
>the award sought is $10,000 or greater; and various other changes in
>PayPal's business practices during the pendency of the litigation.
>
>Class Counsel submitted their proposed request for attorneys' fees to
>the Magistrate Judge who had previously presided over discovery and
>settlement discussions. Class Counsel's request for attorneys' fees is
>equal to the amount recommended by the Magistrate Judge.
>
>
>11. WHEN AND HOW WILL THE COURT DECIDE WHETHER TO APPROVE THE
>SETTLEMENT?
>The Court will hold a hearing on September 24, 2004, at 9:00 a.m.,
>before the Honorable Jeremy Fogel, United States District Judge, United
>States District Court for the Northern District of California,
>Courtroom 3, 5th Floor, 280 South First Street, San Jose, California
>95113. The purpose of the hearing will be to determine (a) whether the
>proposed settlement should be approved as fair, reasonable, and
>adequate;
>(b) whether the application by Class Counsel for an award of attorneys'
>fees and expenses should be granted; and (c) whether the lawsuit and
>class members' claims should be dismissed with prejudice pursuant to
>the settlement. The Court reserves the right to adjourn or continue the
>hearing without further notice to the class.
>
>You may attend the hearing if you wish, but are not required to do so
>to participate in the settlement.
>
>If the settlement is not approved by the Court, the lawsuit will
>proceed. If there are further actions taken in the case that affect
>your rights, you will receive notice as determined by the Court.
>
>
>12. CAN I COMMENT ON THE SETTLEMENT?
>If you decide to remain in the class, and you wish to comment in
>Support of or in opposition to the settlement or Class Counsel's motion
>for attorneys' fees and expenses, you may do so by mailing or
>delivering your written (non-email) comments, such that they are
>RECEIVED on or before September 3, 2004, as follows: (1) the original
>must be sent to the Court at the following address:
>
>Clerk of the Court
>United States District Court for the Northern District of California
>280 South First Street
>San Jose, California 95113
>and (2) copies must be sent to Co Lead Counsel and PayPal's counsel at
>the addresses listed in Section 9, above.
>
>Your written comments must contain your name and address; be signed by
>you; and include the reference In re PayPal Litigation, Case No.
>CV-02-1227-JF (PVT). If you wish to appear and present your comments
>orally at the hearing, your written comments must contain a notice
>that you intend to appear and be heard, a statement of the position you
>intend to present at the hearing, and any supporting arguments.
>
>If you do not comply with the foregoing procedures and deadlines for
>submitting written comments or appearing at the hearing, you will not
>be entitled to be heard at the hearing; contest or appeal from
>approval of the settlement or any award of attorneys' fees or expenses;
>or contest or appeal from any other orders or judgments of the Court
>entered in connection with the settlement.
>
>
>13. HOW CAN I GET MORE INFORMATION ABOUT THE SETTLEMENT?
>You can get more information by writing Plaintiffs' Co-Lead Counsel
>electronically or by first class mail at:
>paypalsettlement@settlement4onlinepayments.com
>
>Girard Gibbs & De Bartolomeo LLP
>601 California Street, Suite 1400
>San Francisco, California 94108
>
>Wolf Popper LLP
>845 Third Avenue
>New York, NY 10022
>This notice is a summary and does not describe all details of the
>settlement. For full details of the matters discussed in this notice,
>you may wish to review the Settlement Agreement dated June 11, 2004
>and on file with the Court or visit https://www.paypal.com/settlement/.
>Complete copies of the Settlement Agreement and all other pleadings and
>papers filed in the lawsuit are also available for inspection and
>copying during regular business hours, at the Office of the Clerk of
>the Court, United States District Court for the Northern District of
>California,
>280 South First Street, San Jose, California 95113.
>
>
>
>PLEASE DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE.
>
>DATED: July 12, 2004
>
>
>
>BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT
>OF CALIFORNIA

[Timber Loftis]

We used PayPal for a complaint, because an a-hole on E-bay cheated us out of $500. PayPal stiffled our complaint against the guy and refused to help. They only allowed us 1 (one) complaint (for non-receipt) and, once the goods were received in damaged condition they said, "Well, that wasn't your complaint, so tough titty for you." The would not allow us to pursue our second valid complaint, that the items were damaged.

So, we called our credit card company and screwed PayPal right back. And the guy who sent the defective items. Two people have cheated me on Ebay, and each have gotten the local authorities involved in their lives. We had to deal with hassle and annoyance, but never lost any money. Don't mess with lawyers, I believe, is the lesson.

Anyway, ours is the exact kind of claim this lawsuit addresses:

The lawsuit alleges that PayPal violated the federal Electronic Fund Transfer Act("EFTA"), 15 U.S.C. E 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.

It looks like we will qualify as "Dispute Resolution Claimants" as well as "Fund Claimants." Seems like we'll still only get $50, since we didn't lose money. Better than nothing, considering our level of hassle due to PayPal.

Let me make an object lesson out of this. Citizen Suits provide a valuable service. With each aggreived person being injured in relatively small amounts, no lawyer would take any one of our cases -- but add us all together and it's worth pursuing.

But, people always bitch about the lawyers making money. In a deal like this, where the settlement is $9 million, the standard attorney rate of 33% would net about $3 million. In class action cases, lawyers take less that 1/3, so let's be conservative and assume the lawyers get $2 million or less out of this deal. Yep, that's their cut. But, is the fact that you don't like them making that money enough to do away with the system? If it weren't for the class action, companies behaving badly would have no incentive to change.

Additionally, a class action like this takes time to come to settlement. Note the case No. is 02-1227-JF. The "02" means this case was filed in 2002, and the work for it likely began as much as a year earlier. So, with probably 10 or more attorneys working on it, including several paralegals and support staff to manage all the paperwork we are going to send, and including all the work to get it done (probably through 2005), we are looking at $2 million for 4 years of work by a team of 25 people or more. If we average that out, that's like $20K/year each (lawyers would make more, paralegals less, but I'm just using rough numbers). I mean, really, how cheap are you demanding lawyers work for? People look at $2 million and get "sticker shock" and hate lawyers, and have no clue how much goes into the whole thing.

So, to recap:
Citizen suits good.
Lawyers good.
PayPal bad.
mkay?
[img]graemlins/heee.gif[/img]

[ 07-29-2004, 02:55 PM: Message edited by: Timber Loftis ]

[Felix The Assassin]

And a very big Tanks goes out to TL!

[Timber Loftis]

Actually, thanks to you. I didn't get the notice, and your post clued me in on the settlement. So, I owe you for showing me the way to $50 smackers. Note that everyone on IWF who joined paypal since 1999 (most of us) should go to www.paypal.com/settlement and check it out. Line up to get paid, that's what class actions are all about!!

Remember, if you don't take the money, the lawyers or PayPal will.

Opting Out: Note the discussion of Opting Out of the Settlement. Don't do this unless you intend to bring your own separate lawsuit against PayPal. If you don't intend to file your own lawsuit, there's no reason to "opt out" of the class.