Land of Oz

Bloodsuckers and other Low Lifes

Here's why I really hate much of what a class action suit is all about. My understanding (minimal by the way) is that PayPal is being accused of illegally blocking the flow of funds from PayPal accounts that may be involved in some kind of fraud. Now, being one who has battled a PayPal user for either my merchandise or money, I might be slightly biased in this case. I don't mind a week or so of delays if it results in my money or merchandise being restored (which in my case it eventually was).

Anyway, according to part 10, the lawyers will get "up to $3,332,500 and reimbursement of expenses up to $135,000." That means a clear profit of around 3.2 million after expenses. That means that one-third of the penalty to PayPay is just for the profit of the lawyers who so valiantly defended our rights.

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.

2fers: Scavengers 1 and Scavengers 2