I'm posting this here because I know many members of this community do business through Paypal. As you may know, Paypal is being sued (isn't everyone these days?) and I just wanted to point out a few facts from the proposed settlement.
1. As a short-form claimant you cannot recieve more than $50 from the proposed settlement. It is likely that you would recieve less. Long-form claimants may recieve more, but have the same amount of money set aside for their reimbursement and must provide documentation of claims. Statutory claimants should expect to recieve even less as their share of the settlement is even less.
2. The attorneys for the plaintiffs are asking for $3,332,500 plus expenses. No, that's not a misprint: over 3 MILLION dollars out of a 9 million dollar settlement.
In other words, we are about to be paying higher fees for Paypal so that they can cover the cost of the suit, which might pay the claimants enough to eat a meal out. icon_mad.gif icon_mad.gif icon_mad.gif
Who is suing PayPal? We are! That's right, you and me. It's a class action lawsuit representing anyone in the United States who opened an account with Paypal from Oct 1999 (which I believe is when they opened their site) through January 2004. It doesn't matter that I've never signed up for this, these attorneys represent ME. I can Opt-out, but all that means is that I don't get any money, it doesn't effect the settlement amount. If I don't make a claim (and I don't intend to), I don't get any money anyway.
If you haven't figured it out yet, I'm ticked!!! icon_mad.gif icon_mad.gif icon_mad.gif I believe that suits like these are legalized extortion, which hurt consumers, and yet I am considered to be one of the plaintiffs bringing this suit! I have not asked to be represented in this matter, I have not been asked if I wished to be represented in this matter, but I am being represented by someone who I believe does not have my interests in mind.
There is very little I can do about this. However, as a plaintiff in the case, I do apparently have the right to comment on the matter to the Court and I've written a letter to do so. It may not be much, but I intend to be heard. If there is anyone here who would be interested in commenting as well, 2 voices are stronger than 1. And if anyone wishes to pass this on, please feel free. Ten voices would be stronger than 2. Please note that all correspondence in this matter must be recieved by the Court no later than September 3, 2004 and copies must also be sent to the plaintiffs and defendent's attorney's. Letters must have the reference " In re PayPal Litigation, Case No. CV-02-1227-JF (PVT) " and bear an original signiture as well as your printed name and address.
More information should be available at:
http://www.settlement4onlinepayments.com/
It's down right now, but it was working last night. Hopefully they'll have it up again soon. Here is my letter (together with the three addresses to send it to) should anyone wish to copy it:
Clerk of the Court
United States District Court for the Northern District of California
280 South First Street
San Jose, California 95113
PayPal Class Action Settlement
A. J. De Bartolomeo
Girard Gibbs & De Bartolomeo LLP
601 California Street, Suite 1400
San Francisco, California 94108
PayPal Class Action Settlement
Morgan Lewis & Bockius LLP
One Market
Spear Street Tower
San Francisco, California 94105
July 29, 2004
In re PayPal Litigation, Case No. CV-02-1227-JF (PVT)
I would prefer to Opt-Out of these proceedings; however, as I have a choice between Opting-Out and being heard, and I recognize that by Opting-Out no change would be made in the actual settlement of this case, I choose instead to be heard.
I object greatly to the fact that anyone can file a class action lawsuit with myself as a member of that class without making any effort to gain my expressed permission to perform such action. I feel that my rights are compromised whenever such a person abrogates my freedoms by speaking for me without my consent. I do not believe that being given the option of Opting-Out after a settlement has been proposed is sufficient notice to preserve my rights and freedoms.
I further object to attorneys being awarded millions of dollars for services rendered in obtaining financially miniscule reparations for suspect damages. That a company can be threatened with financial ruin solely on the basis of attorneys’ fees and Court costs should they fail to reach a ”settlement” amounts to legal extortion. That the proposed settlement amount would be unlikely to provide sufficient redress for individuals, who are deemed to be a part of the class, even to pay for a meal for their families at a fast food establishment should, in my humble opinion, lead the Court to wonder who the real beneficiaries of this settlement are intended to be.
As I have no wish to be represented in any way by the attorneys presenting this case, I beg the Court to reduce the amount of the award of attorneys’ fees by an appropriate sum. I would consider a reduction of even one dollar a victory in the defense of my rights.
I thank the Court for the consideration of my comments.
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<printed name>
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