PayPal's Class Action Settlement and what it means for us members...

Discussion in 'Cleveland, OH' started by _-Reborn_Jedi-_, Jul 29, 2004.

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  1. _-Reborn_Jedi-_ Jedi Master

    Member Since:
    Mar 9, 2002
    star 3
    To anyone who holds a PayPal account that was created anywhere between October of 1999 and January of 2004, this applies to you. I recieved an email from PayPal today, explaining about a class action settlement that has resulted in all PayPal account holders from the above dates, eligible for payment from the settlement. The email itself seems quite legit, and has been posted on numerous news websites and message boards (just look up "PayPal class action settlement" on Google!), so the suspicion of a scam/hoax is out of the question. Here's a post of the email I had recieved today, for anyone who has not recieved the email themselves (bear with me, this is very long):






    Dear *NAME OMITTED*,


    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, whic
  2. DonC Jedi Master

    Member Since:
    Mar 30, 2001
    star 4
    The email I got from PayPal included a link to the claims form. It said I just needed to fill it out and send it in. Once I actually read the forms, I'll decided whether or not to do this. I probably will, though.
  3. JediKnightPasJoDacle Jedi Master

    Member Since:
    Mar 16, 2002
    star 4
    duuuuuu......I've got a headache now....

    If I'm reading correctly, I think it's saying that if you had someone gank your info, make a payment in your name, or request info on your account and were denied, then you are eledgeable for some cash. I'm still not solid on what the $50 is for. I just did a quick speed read on the post and the news links (it's legit alright, all the terms are there), I'll have to actually READ it now...grrr...headache....I hate legal terms...

    EDIT: Re read it, and the $50 is for what I said above (the info request, etc etc). You probably can get away with requesting and recieving the $50 even IF you didn't have the probloms that are required, but for $50 it IS NOT worth risking the legal penetals that would result if they cought you in the lie (which is EASY!)
  4. _-Reborn_Jedi-_ Jedi Master

    Member Since:
    Mar 9, 2002
    star 3
    Well I understand that you'd have to have problems with PayPal to be eligible I think, but I did have a problem accessing their site for my account info (I was recieving money from a crappy little internet retail store that a friend tried to get off the ground but flopped, which I helped work on) a couple years ago. But how can I prove such a thing? Unless it's logged in their server info or something, I can't really prove it. So I dunno if I should even fill out a form. I'd like to though. But if I can't prove anything, like you said Jon, not worth getting in trouble for a measly $50 (although I am telling the truth about the above matters).
  5. Krash RSA Emeritus

    Member Since:
    Oct 11, 2000
    star 5
    All I know about Paypal is that when I tried to create an account...my computer hates me, when Em tried it...no problem? (figures!!!)

    Even if you can't access the website Will...at some point, doesn't it come out of your debit/credit card (sooner or later, somebosy gets a hold of REAL money from ya) SOMEWHERE? Could you use THAT as proof of the problem?
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