Preliminary Settlement Reached in PayPal Lawsuit
Update (July 28, 2004): See our post "PayPal Class Action Settlement Claims Procedures" for the latest.
PayPal announced today that it had reached a preliminary settlement agreement with a proposed class of PayPal customers who allege that "PayPal did not appropriately communicate about customer transactions and did not appropriately process limits that were placed on some customer accounts."
The case involves a proposed class of individuals and businesses that held a PayPal account during the period from October 1, 1999, through January 31, 2004. PayPal users residing in European Union member countries are excluded from the class.Under the terms of the settlement, certain PayPal account holders will be eligible to receive payment from a settlement fund in accordance with the preliminary settlement's plan of allocation. The settlement fund, which will be funded by PayPal, will total $9.25 million, less administrative costs and any amount awarded to plaintiffs' counsel by the court. A copy of the plan of allocation is on file with the court and will be publicly available via a link from the PayPal Web site in approximately 60 days.
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 settlement@paypal.com or calling 1-866-648-5874.
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