paypal settle ment ... sorting the leagalese

I’ve read it carefully five times and still don’t know if I have to opt out, opt in, wait for a payment, what?

part the first

part the second

You’re automatically included in the class, if you:

If you want to be excluded from the suit, you must opt out:

But you won’t receive any payment unless you file a claim:

I too received an email with all the legalese to wade through.

I deduced that two persons had a complaint or problem with Pay Pal and filed law suits. Somehow these ultimately resulted in a Class Action. Financially destitute trial lawyers???

I have had no problems with Pay Pal yet I have been automatically included in the class of persons bringing suit unless or until I Opt Out.

I intend to Opt-Out but why did the court not require that anyone wanting to participate should Opt-In? Is this a legal thing to increase the fees for the lawyers and the courts?

Not a fan of Class Action Lawsuits!

What are the consequences of doing nothing?

I’ve seen this often. Many times I’ve received something in the (postal) mail saying that there is a class action law suit against a company that makes a product I have. Usually they get my name from the warranty card I send back in. They usually say that if I do not want to be included, I must opt out. Otherwise I’m automatically included. If I want to receive a settlement I have to fill out a claim form. If I do nothing (not really fair) I won’t receive a settlement, but I can’t sue the company on my own (unless I opt out). I guessing that last statement has something to do with why everyone is opted-in from the beginning. I’ve never actually filed a claim on any of these. I get the feeling that even though the letter you get implies it, it would be a little more then just sitting back and receiving a check.

Lets do the prospective math -

9 mllion dollar settlement. In class actions at least half typically goes to trial lawyers, expenses and original litigants, say optimistically that 4 mill is left for claims. Paypal has over 40 million members - If only 30 million of those joined within the time line, and then only 10% of those eligible apply for the benefit it is not likely the benefit is going to be substantive for an individual applicant. Benefit will likely range for 2-3 dollars per applicant to maybe $ 10 at best.

I’m eligible, but I’ll pass.

If you follow the link to make the claim it tells you the conditions for trying to get the money. If pay-pal hasn’t caused you any trouble you aren’t eligible for the money. I think the in by default means that you are assumed to be a pay-pal customer who might have had a problem related to the case. If you are you submit the claim and get your money. I’m not sure how opting out fits into it, as opposed to doing nothing. I guess if you do nothing you no longer have recourse with any problems the lawsuit dealt with. If you opt out you can deal with it on your own. This is, I suppose, for people who lost a large amount of money due to pay-pal.

so now i have to remember if they screwed me over or not?

uh; okay …

The reason class members are in by default is because defendants want to settle as many claims as possible as quickly and cheaply as possible. In this instance there are potentially millions of plaintiffs and should even a handful of them get it into their heads that they want to sue individually, even if they all lose, PayPal will be out a small fortune in legal fees. By settling with the class, PayPal forecloses anyone who doesn’t opt out from pursuing a separate legal remedy. This is spelled out in Number 8:

If you do nothing you will be a member of the class as described in the message and you will be unable to pursue separate legal claims against PayPal at any time in the future.

IANAL, etc.

Oh, another reason for class action suits is judicial economy. If you have a substantial number of plaintiffs all with substantially the same claim against the same defendant, it’s much less of a burden on the court system if there is one large lawsuit (which is more likely to be settled) than if there are dozens or hundreds of individual suits.

This site (for which I make no voucher) has a discussion of the law of class actions.

Not quite, if I am reading this correctly, you would be a Statutory Damage Fund Claimants, and they have put aside 1,000,000 for these folks:

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 © 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.

  1. 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.

Not quite, if I am reading this correctly, you would be a Statutory Damage Fund Claimants, and they have put aside 1,000,000 for these folks:

Just to clarify…if you don’t opt out and are thus considered part of the class, does that preclude you ever suing PayPal for anything ever, or just suing them for the issues addressed by the class action suit?

So, I got this email, but I just want to clarify…

I can fill out the Statutory Claimant form even if I never suffered any monetary damage from PayPal?

You waive your right to sue them about any issue that happened prior to 02/01/2004.

I am not a legal expert, but having read the entire document (I got it this morning too) it is my opinion that this is correct.

Worth noticing that there is ~8 million for people with damages, ~1 million for people without damages… I think this is in there to entice those who didn’t suffer damages to be honest about this.

I must say that I suspect that the payments from the Statutory Damage Fund will be more substantial than some expect, given that you have to print and mail in a claim form, thus eliminating lazy people, which includes most people.

Phishing? :dubious:

A few years ago I sold a CD on eBay and the buyer paid with PayPal. PayPal charged his credit card twice and he was unable to get them to refund the extra charge after months of trying. So he initiated a chargeback for the bogus charge, to which PayPal responded by deducting the amount from my PayPal account. Eventually PayPal straightened out the problem and refunded both of our money, but it seems as though this might qualify me for the Dispute Resolution Claimant group. Whether I can dig up a precise record of it is another matter.

I was just about to start a thread asking if this is a real e-mail, or a phishing expedition.