Paypal Class Action Lawsuit?

[Wolfen]

I've searched, there's no thread on this.

I just got an e-mail about a class action lawsuit being brought against Paypal for violating the "Electronic Fund Transfer Act" (EFTA).

I know there's been a whole crap load of Paypal e-mail scams, and they're becoming increasingly genuine looking. So I'm just wondering, has anyone else received this e-mail, has anyone heard whether or not it's legit? Any info is greatly appreciated.

[cphilip]

I've searched, there's no thread on this.

I just got an e-mail about a class action lawsuit being brought against Paypal for violating the "Electronic Fund Transfer Act" (EFTA).

I know there's been a whole crap load of Paypal e-mail scams, and they're becoming increasingly genuine looking. So I'm just wondering, has anyone else received this e-mail, has anyone heard whether or not it's legit? Any info is greatly appreciated.

What you got might be a spoof or something so be very carefull and do not fill out any forms online giving information out.

But I did find this interesting tidbit. Probably not the same thing your talking about but good info for Credit Card users of Pay Pal to know:

http://msnbc.msn.com/id/3078504/

[Crighton]

I was able to find this site by going to PayPal, logging in, selecting "about us" and choosing Press Releases:

http://www.shareholder.com/paypal/r...446&Category=US

Included is the following:

Customers will be notified of the terms of the settlement agreement within 60 days of its preliminary approval by the court. Customers can get more information about the settlement agreement by sending an email to [email protected] or calling 1-866-648-5874.



So, if you're wondering whether or not the settlement website is legit, just give the number a call.

Call as follows
old music I recognized from when I called PayPal last year when I reopened my account... then:

"Hello, Paypal resolutions, this is [generic female name]."
"Yes, um... I have kind of a silly question. I, and various friends of mine, recieved an email from y'all saying you're involved in a class action suit, and you can give your info to a non-PayPal site to make a claim. Well, we were wondering if this is legit. I know... I sound silly, but I've recieved a lot of emails from non-PayPal sites, and I just wanted to make sure it was real."

She went on to verify my account info, then said, "Yes, the email and the class action suit are real."

[Steelrat]

Yes, it seems to be real, and all they ask is your email address. Its when they start asking for your password that you get worried.

[Thordic]

You need to have been damaged monetarily by paypal in order to collect, and the payout is $50.

I spent a while this morning trying to figure out how I could show paypal owes me. I'd get $100 since I have two paypal accounts. Someone help me out here :)

[magking1971]

If anyone knows how to stick it to Pay-pal LET US KNOW!!

[MrWallen]

I tried to transfer some funds to my PayPal acct once and didn't realize that the transfer didn't work and ended up losing an auction because of it, think that counts?

[Wolfen]

Thanks a lot for calling on that Crighton.

I don't use Paypal enough to even know whether or not I've gotten screwed by them. I've used it a grand total of, like, twice. Good luck to those of you who try though.

[cphilip]

I finaly got one today. So I am trying to get in to look at it. But its timing out. Probably too many peeps trying to access the site now.

[cphilip]

Well it does seem you have to show you were wronged to be included in the settlement. And I never have been.

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.....

[_tMAN]

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/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/[email protected]

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