PayPal Class Action and Proposed Settlement

This post was written by marc on July 28, 2004
Posted Under: Consumer Complaints,PayPal

PayPal sent me this about their class action lawsuit.

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

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. §§ 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 §§ 17200 et seq.; the California Consumers Legal Remedies Act, Cal. Civ. Code §§ 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. §§ 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

Reader Comments

great post, i will take advantage of this as i opened up then with paypal.

#1 
Written By car tracking on July 29th, 2004 @ 5:59 am

You are an idiot. “This call may be recorded” does not mean “We give you permission to record” The call you recorded makes you look stupid and they look informed. You have a good point, but you went way wrong in your delivery

#2 
Written By Greig on July 29th, 2004 @ 8:05 am

don’t mind the idiot. some people wish they could be as eloquent as you. I too will take advantage of this. And BTW Greig, this call may be recorded for quality or assurance purposes does not mean you have to record it, but you also can. It’s already being recorded. I have recorded many calls with AT&T and Comcast after I hear that recording. I write down the time and date. If there’s any dispute, they can check their records. Most people aren’t aware the power that they have against big companies. Big companies fear those with knowledge. That’s how they get away with a lot. Look at the collection agencies and their strong-arm tactics that they use to collect. 99.999999% fall into their playbook. But for those us who are empowered and do something about it, well, a pat on our backs!

#3 
Written By charlie chingas on July 29th, 2004 @ 10:46 am

Yah, that automated phone message is subject to different interpretation the way it is stated. So I’ve got no problem with you recording it.

Here’s my story: Initially, my account was placed on restrictive access due to another account supposedly having a connection with mine that had unpayed balance. That’s what I was told. I never got any notice about this until I accessed my account and found the restriction placed on me. They asked me to resend identification documents and I did. Several months later and nothing had changed. I finally called them and I was told the same thing about the unpayed balance on another account that’s linked to mine. I asked how it was linked and they would not tell me due to privacy and that they were investigating it. It’s been over a year and few months ago my account was terminated unbeknownst to me. I was hoping paypal would clear this mess up but instead they opened up a can of whoop-ass.

#4 
Written By M on July 30th, 2004 @ 1:21 am

I also got this email from paypal….but the link to: http://settlement4onlinepayments.com
Only leads to a 404 page….i emailed paypal trying to look into it and still have yet to receieve a response….prolly for reason on their part it would help them not to help people with this issue…but has anyone else had this problem?
PLEASE EMAIL ME

#5 
Written By Steve on July 30th, 2004 @ 5:34 am

I couldn’t get to Paypals settlement website either. Apparently, the emails they’ve sent out are linked to nothing but a search engine. Don’t know what the deal is, perhaps it’s just a diversion. Anyone who knows the proper website, let us know. Thanks

#6 
Written By Tori on July 30th, 2004 @ 7:11 am

please email me if you can find out the correct website…I don’t know what their problem is ,but I will fill out the form to file a claim

#7 
Written By Linda on July 30th, 2004 @ 9:36 am

Not posting my actual email address – don’t know you folks – but I emailed PayPal about that letter and they immediately responded saying it’s bogus – a ploy to get your information. It is NOT a legitimate PayPal email!!!!

#8 
Written By Donna on July 30th, 2004 @ 9:39 am

I too received this e-mail and contacted paypal about it. They claim it is legit. The website does work, it just appears to be overwhelmed.

#9 
Written By Tom on July 30th, 2004 @ 9:48 am
#10 
Written By paul on July 30th, 2004 @ 7:32 pm

are you people that naive? i have tried to contact the “attorney agencies” and have traced the “attorney” names given through a good attorney i am friends with. this is NOT legitimate. DO NOT give information! if you notice, they want your account number and will “deposit” your payment request…give me a break! they have no phone number and all names and addresses are bogus. i have mailed this into the state and they are looking into finding who is sending this out. also, the “forms” are not legitimate. there was a recent action filed against paypal…not this big though…this person is taking advantage of the situation to manipulate thousands of people out of their hard earned money…do your research and you decide…but i recommend to think twice!

#11 
Written By Trisha on July 30th, 2004 @ 8:06 pm

are you people that naive? i have tried to contact the “attorney agencies” and have traced the “attorney” names given through a good attorney i am friends with. this is NOT legitimate. DO NOT give information! if you notice, they want your account number and will “deposit” your payment request…give me a break! they have no phone number and all names and addresses are bogus. i have mailed this into the state and they are looking into finding who is sending this out. also, the “forms” are not legitimate. there was a recent action filed against paypal…not this big though…this person is taking advantage of the situation to manipulate thousands of people out of their hard earned money…do your research and you decide…but i recommend to think twice!

#12 
Written By Trisha on July 30th, 2004 @ 8:07 pm

OK here is some information 1) the IP that was used to Send the Email you Recieved is OWNED by Paypal Inc. and Admined by Ebay Inc, The Ip was purchased on 15-Jul-1999 and is OWNED til 15-Jul-2010. 2)After doing Research on the Law Firm I have found the following, the Point of Contacts are NOT listed in the California Bar association, hence they CANNOT be lawyers. But the Settlement4onlinepayments.com is Owned by the Lawfirm. The Phone number for the Lawfirm is 415-981-4800 and the email for Emily Fedman is elf@girardgibbs.com. and the Lawyers web site is girardgibbs.com …. Take this information as you will

#13 
Written By Simon on July 31st, 2004 @ 12:47 am

well not only that, but if this is a fake, then there is on very talented hacker out there that is able to put a redirect on paypal.com withouth there knowing… this is going to be on interesting thread…

#14 
Written By charlie chingas on July 31st, 2004 @ 9:38 am

Even if this e-mail were legitimate, should one try to collect? Paypal has damaged me in no way; on the contrary, they have provided a beneficial service. I say no damage, no claim.

#15 
Written By Walter on July 31st, 2004 @ 3:00 pm

I too can not find the web site. I hope this isn’t a joke!

#16 
Written By John Titus on July 31st, 2004 @ 4:06 pm

paypal really made me mad a few months ago. i tried to get them to refund money paid a website, but they refused to take any blame for it. just gave me a song and dance routine. what a load of crap. i say, good enough for them. i hope they have to pay big bucks to anyone that has ever had to deal with them. they dont try to resolve your problem, they just try to pass the buck. so now, look what has happened to their little operation. what goes around comes around.

#17 
Written By linda shipman on July 31st, 2004 @ 10:49 pm

Pay-pal is own by ebay and they both are a rip off, Why?
1. I ship something and the customer said that he got a empty box. pay-pal take 2430 dollars from my account with out my permission. who are they to judge..
2. Paypal does not take care of there customer. The sellers are their customers we give ebay money when we post an item we give paypal money when somebody pays for that item. nevertheless when a complain is file we treat like total criminals.
3. Paypal and ebay try to own you little by little, first they ask for some personall information so you can open one of the paypal accounts, they let you add money as long as you give them your credit card number, If you want to withdraw money you better be verified, at this point you got to give them your bank account number.
3.Ebay also harbors fraudulent individuals and thieves by lettin them do easy business through there website.
Bad bad customer service are seeing on ebay and all the companies that surround them, If you are dealing or planning to deal with this companies, my suggestion will be to stop, because sooner or later you are going to be a victim of one of them fradulent predators.

#18 
Written By tony on August 1st, 2004 @ 4:08 am

Is it wise to participate in this settlement? Settlements relieve you of your right to sue in the future. Although PayPal claims it has ammended its business practices since this lawsuit, are we forfeiting our rights to sue if PayPal wrongs us in the future, in exchange for a very small slice of the pie?

Oh, and it is definitely legit. The site is owned and maintained by PayPal, and its authenticity has been verified by Snopes.com, The Register, and MSNBC.

#19 
Written By Jesse on August 1st, 2004 @ 8:08 am

I forwarded that exact e-mail to Paypal’s e-mail addy as I am suspicious. This is their reply to me confirming that I was right that it is a fraud. If you don’t believe me… go to Paypal yourself and e-mail them directly as it is always better to talk to the horses face and not the horses ass.

Here it is…

Dear XXXX XXXXXXX,

Thank you for bringing this suspicious email to our attention. We can
confirm that the email you received was not sent to you by PayPal. The
website linked to this email is not a registered URL authorized or used
by
PayPal. We are currently investigating this incident fully. Please do
not
enter any personal or financial information into this website.

If you have surrendered any personal or financial information to this
fraudulent website, you should immediately log into your PayPal Account
and
change your password and secret question and answer information. Any
compromised financial information should be reported to the appropriate
parties.

If you notice any unauthorized activity associated with your PayPal
transaction history, please immediately report this to PayPal by
following
the instructions below:

1. Go to https://www.paypal.com/

2. Click on the Security Center at the bottom of the page

3. Click on ‘Report a Problem’

4. Select the Topic: Report Fraud

5. Select the Subtopic: Unauthorized use of my PayPal Account

6. Enter your question in the ‘Summarize your question in one
sentence’ box

7. Click Continue

8. Follow the instructions to access the appropriate form

We are continually improving our customer service to accommodate
members’
needs and can be contacted via secure webform at
https://www.paypal.com/wf/f=default.

If you are unable to log in to your account, please contact us using
the
webform at https://www.paypal.com/ewf/f=default.

This email is sent to you by the contracting entity to your User
Agreement,
either PayPal Inc or PayPal (Europe) Limited. PayPal(Europe) Limited is
authorised and regulated by the Financial Services Authority in the UK
as
an electronic money institution.

#20 
Written By Damsel on August 1st, 2004 @ 10:25 am

I’m a definite skeptic when it comes to emails that look like they are gathering info. However, after searching on-line, these three websites have info on lawsuit. It seems legit. Note though, lawyers are expected to receive 3.4 million of the lawsuit, which leaves 5.8 for the rest – and with 45 million users – you do the math.

http://www.msnbc.msn.com/id/5550334/

http://www.nasdaq.com/asp/quotes_news.asp?selected=EBAY&symbol=EBAY`&textpath=20040614\ACQDJON200406142143DOWJONESDJONLINE000955.htm&cdtime=06%2F14%2F2004+9%3A43PM

http://www.newsday.com/business/ny-bzpal293909564jul29,0,5418626.story?coll=ny-business-headlines

#21 
Written By J on August 1st, 2004 @ 11:14 am

I went to the website & after putting in my personal info & requesting a check to be sent instead of direct deposit into my Paypal acct. I had problems getting the “confirmation” page to come up so I emailed a contact address they give on the site http://www.paypal.com/settlement. This was the reply I got:

Thank you for contacting us about the PayPal settlement. We hope you have
carefully read the Notice of Pendency of Class Action and Settlement you
received via email, as it may affect your legal rights with respect to
claims you may have against PayPal.

In the interest of providing you with the promptest response possible, we
have sent you this general response, and ask that you please review the
category headings below to see if one applies to your question.

If your question is not answered by any of the categories below, please
respond to this message and we will do our best to answer your specific
question. Please understand that it may take 4 to 6 business days for us
to do so.

1. The Website Is Not Working Properly Or Is Too Slow

The website is experiencing delays and other problems due to an extremely
high volume of traffic. Please note that the deadline to submit an online
claim is not until October 23, 2004. Claim Forms must be submitted online
(and the certification page mailed in to the address on the certification
page) ? there is no alternate way to submit a claim. As website traffic
slows in the next week, it should become much quicker and easier to
navigate the site.

We truly appreciate your patience while these matters are resolved.

2. I Need More Information About The Settlement

The Notice of Pendency of Class Action and Proposed Settlement is designed
to answer your basic questions about the settlement. If after carefully
reading that document, you still have questions, please visit
http://www.settlement4onlinepayments.com to see a list of Frequently Asked
Questions and Answers, as well as additional documents relating to the
settlement. Please note you must submit a claim form online, through the
website just mentioned, in order to receive any money from the settlement.

3. Why Does The Online Claim Form Reject My Non-U.S. Address?

It has come to our attention that the claim form does not yet accept
foreign addresses. Please be advised that the site administrator is fixing
this problem. Persons living outside the United States are entitled to
file claims, unless they currently reside in Austria, Belgium, Denmark,
Germany, Greece, Finland, France, Ireland, Italy, Luxembourg, Portugal,
Spain, Sweden, The Netherlands, or the United Kingdom.

4. Why Does The Online Claim Form Reject My Email Address As
Invalid?

It has come to our attention that the Claim Forms do not accept some email
addresses, usually those with hyphens or multiple periods. Please be
advised that the site administrator is fixing this problem.

5. I Was Unable To Print The Certification Page. What Should I Do?

Some people have been unable to print the certification page at the end of
the online claim form. We are developing a protocol to address this
situation. Please REPLY to this email, with “Certification Page Problem”
in the subject line of your email. We will save your information and
contact you next week with instructions regarding what to do to ensure your
claim is accepted as valid.

6. The Online Claim Form Rejects The Date I Entered For When I
Opened My PayPal Account.

Most likely, the claim form is rejecting the date you entered because you
are not entering it specifically in the “MM/DD/YYYY” format. In other
words, for September 4, 2002, the form would accept “09/04/2002” but NOT
“9/4/2002” or “9/4/02”, etc…

If you do not know the precise date on which you opened your PayPal
account, please use an approximate date.

7. I’m Worried The Notice I Received Is Fraudulent. Is This A
Legitimate Settlement?

Yes, this is a legitimate settlement. The present settlement was reached
to resolve the case In re PayPal Litigation, Case No. 02-1227 JF PVT. The
case is before Judge Jeremy Fogel in the U.S. District Court for the
Northern District of California, San Jose Division.

8. How Do I Know Which Claim Form To Use?

Basically, if you had a problem with PayPal, you should file a Short Claim
Form or a Long Claim Form. If you did not have a specific problem as
explained in the next paragraph, you should file a Statutory Claim Form.

To define more specifically which “problems” qualify you to make a Short
Form or Long Form claim – you can file if you:
(i) experienced or reported to PayPal an
unauthorized or incorrect electronic transfer to or from your PayPal
account including, without limitation, electronic transfers initiated by
(a) you ; (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 your PayPal account
improperly, incorrectly or erroneously limited or restricted, in whole or
in part; or
(iii) made a request for information in
connection with PayPal’s restriction or limitation of your PayPal account
or regarding an incorrect or unauthorized electronic transfer to which
PayPal did not respond at all or did not respond to your satisfaction.

9. What Will I Get Under The Settlement?

The amount you receive depends in part on whether you are a Statutory
Damage claimant or someone who had a problem with PayPal and is therefore a
Short Form or Long Form claimant. See category 8, just above, for details
regarding which claim form(s) you are qualified to file.

The Short Claim Form allows you to receive an automatic payment for
providing a minimal amount of information. If you make a timely, valid
claim using the Short Claim Form, you will receive a payment of up to $50,
depending on the number of Short Form Claims that are received.

The Long Claim Form is intended for people who believe that they have
larger claims and want to provide detailed information and supporting
documentation. 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 if presented in
a court of law; and such other factors that the claims administrator
considers relevant. A retired judge who served as the mediator in this
case will oversee and approve the methodology and procedures used by the
claims administrator.

The Statutory Damage Claim Form provides access to compensation for
potential statutory damages under the Electronic Fund Transfer Act
(“EFTA”), 15 U.S.C. §§ 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.” Under the Settlement, the parties
negotiated the Plan of Allocation designating $1 million to be distributed
equally among those who make timely, valid Statutory Damage claims. The
amount of your payment will depend on the number of claims made.

We hope this email has addressed your specific question. If not, please
reply to this email at paypalsettle@girardgibbs.com and
paypal@wolfpopper.com, and I or another member of our legal team will
respond with a specific answer within 4 to 6 business days.

Thank you again for contacting us.

Best regards,
Girard Gibbs & De Bartolomeo LLP
Wolf Popper LLP

The email was from this address:
notes/gcg.GARDENCITYGROUP@gardencitygroup.com

It seems legit to me . . .

#22 
Written By Shan on August 1st, 2004 @ 7:11 pm

I think it’s legitimate. I didn’t check out the New York lawyer, but the lead co-counsel in California, A. J. De Bartolomeo, is indeed a lawyer. See http://lawyers.martindale.com/xp/Martindale/Lawyer_Locator/Search_Lawyer_Locator/search_result.xml?PG=0&STYPE=N&LNAME=De+Bartolomeo&FNAME=&FN=&CN=San+Francisco&CTY=&STS=5&CRY=1&LSCH=

All the papers look very typical of class action settlements.

#23 
Written By Ron on August 2nd, 2004 @ 7:24 am

Hey,
I listened to your audio conversation. And i feel sorry bout what paypal did. Just dropping a note to tell you that am supporting you over this case!

Wish you the best,
James

#24 
Written By James on August 5th, 2004 @ 11:18 am

YOU ARE AN IDIOT. BENDOVER!

#25 
Written By shane on August 7th, 2004 @ 9:09 am

okay, I’m still waiting for my money, boy they sure don’t wait on you when you owe them(pay pal) money. Hmmmm! Show us the money old pay pal.

#26 
Written By linda on October 15th, 2004 @ 5:00 pm

i believe i am in the class action group

#27 
Written By charles mccarty on January 19th, 2005 @ 2:37 pm

Does anyone know if they have set up a plan of allocation in dollar amounts for the long form claimants available as of this time?

Thank you.

#28 
Written By ssfgirlie on June 1st, 2005 @ 10:37 pm

i couldn’t not open the paypal site in my computer; when i try to open through the Mozilla Firefox i am getting the error messege ” The connection was refused when attempting to contact http://www.paypal.com “. through IE 6.0 also i am getting error messege.
can anybody suggest me ways to solve the issue, because i want to pay to my vendor through paypal a/c after adding funds to them

#29 
Written By ponnivalavan on September 17th, 2006 @ 9:59 pm

i’m trying to get PayPal charged with Identity Theft. The last four numbers on my personal bank account has been used by bogus paypal e-mails.
I already have the F.T.C. & F.B.I., BBB involved.

#30 
Written By Brian Wieland on February 13th, 2007 @ 10:26 am

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