>Date: 30 Jul 2004 18:51:11 -0000
>From: PayPal <[EMAIL PROTECTED]>
>Subject: Notice of Pendency of Class Action and Proposed Settlement
>To: "Jeff Houser" <[EMAIL PROTECTED]>
>X-Mailer: PayPal Mail Service (2.0.3)
>
><https://www.paypal.com/>
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>Dear Jeff Houser,
>
>
>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/>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/.)
>
>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/>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/>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/>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:
><mailto:[EMAIL PROTECTED]>[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/>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
>
>
>[]
>
>This PayPal notification was sent to [EMAIL PROTECTED] To modify
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>about the security of your information, read our Privacy Policy at
><https://www.paypal.com/privacy>https://www.paypal.com/privacy. Replies to
>this email will not be processed. Copyright� 2004 PayPal, Inc. All rights
>reserved. Designated trademarks and brands are the property of their
>respective owners. PayPal is located at 2211 N. First St., San Jose, CA 95131.
--
Jeffry Houser, Web Developer, Writer, Songwriter, Recording Engineer
<mailto:[EMAIL PROTECTED]>
--
AIM: Reboog711 | Phone: 1-203-379-0773
--
My Books: <http://www.instantcoldfusion.com>
Recording Music: <http://www.fcfstudios.com>
Original Energetic Acoustic Rock: <http://www.farcryfly.com>
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