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Thread: eBay Class Action Lawsuit

  1. #1
    Ryu Hayabusa (Level 16) rbudrick's Avatar
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    Default eBay Class Action Lawsuit

    I got a message from eBay with a whole lot of legalese in it and have no clue what it's talking about. Can anyone give me the Cliffs Notes version of this?

    -Rob


    SUPERIOR COURT OF THE STATE OF CALIFORNIA

    COUNTY OF SANTA CLARA


    JOHN ROCKERS, MARK RAWLING and
    BRIAN MORK , On Behalf of Themselves and for
    the Benefit of All with the Common or General
    Interest, Any Persons Injured, and All Others
    Similarly Situated,
    Plaintiff,
    vs.

    EBAY, INC., et al.,
    Defendants.

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    Case No. 1:05-CV-035930

    CLASS ACTION

    NOTICE OF SETTLEMENT OF CLASS ACTION


    DATE ACTION FILED: 02/17/05





    THIS IS A LEGAL NOTICE. YOUR RIGHTS MAY BE AFFECTED.

    PLEASE READ IT CAREFULLY.


    To: All eBay users from February 16, 2001 to the present. If you claim to have been harmed by eBay raising the eBay bidder's existing bid where no higher competing bid had been made and where raising the bid was not necessary to meet a reserve minimum you are a Member of the "Class" and your rights may be affected by the proposed class action settlement of a lawsuit alleging that eBay would automatically increase in certain circumstances an existing bid where no competing bid had been made and where it was not necessary to meet a reserve minimum. eBay denies any and all of the contentions and allegations of wrongdoing relating to eBay's increasing an existing bid where no competing bid had been made and where it was not necessary to meet a reserve minimum, and denies that the Members of the Class have suffered any damage. This Notice summarizes the terms of the settlement, and explains your rights and options under the settlement.


    I. THE LAWSUIT


    On February 17, 2005, a complaint was filed by plaintiff Glenn Block in the Superior Court of the State of California County of Santa Clara ( the "Court") as a class action alleging that eBay's automatic increase in certain circumstances of an existing bid where no competing bid had been made and increasing the bid was not necessary to meet a minimum reserve was improper and artificially inflated the bids of eBay buyers, thus causing damage to eBay buyers (the "Action"). On April 17, 2006, an Amended Complaint which, among other things, substituted Plaintiffs John Rockers, Mark Rawling and Brian Mork for the original plaintiff was filed in the Court. The caption of the Action is Rockers v. eBay, Inc., et al., Case No. 1:05-CV-035930.


    II. THE SETTLEMENT TERMS


    The parties participated in mediation with the Honorable Read Ambler (Ret.) in an effort to resolve the Action. As a result of the mediation and in order to settle the allegations in the Action, eBay has agreed to cease the conduct alleged by making the following "curative disclosure" that is relative to the misrepresentations claimed by Plaintiffs:


    In response to a system prompt, if a high bidder attempts to raise his maximum bid when such bidder is then between bid increments, eBay shall first disclose to such bidder the exact amount of any resulting bid increase that would otherwise occur by virtue of the bidder raising the maximum bid. By way of illustration only and using the facts set forth in paragraph 23 of the Complaint, upon raising the maximum bid once plaintiff had reached his existing bid maximum of $111.00, eBay would disclose whether raising the maximum bid level would result in the $111.00 bid being raised to the next bid increment over the last competitive bid of $110.00 and, if so, specify the exact amount to which the bid would be raised - that is, $112.50.


    In addition, eBay has agreed to pay the sum of $2.1 million ("Settlement Fund"). The Settlement Fund will be distributed to one or more federally tax exempt charities chosen by Plaintiffs' Counsel and approved by the Court. None of the charities selected by Plaintiffs' Counsel and approved by the Court shall be directly or indirectly affiliated or associated with Plaintiffs or their counsel. Based on information provided by eBay to Plaintiffs' Counsel, the $2.1 million is estimated to be approximately 50% of the claimed damages and all other economic harm allegedly incurred by Members of the Class. Distribution of the Settlement Fund to charitable organizations is appropriate because any attempt to distribute the Settlement Fund to individual Members of the Class - whose average recovery would be less than $1.00 - would result in administrative costs that would consume any settlement proceeds.
    eBay has also agreed to separately pay Plaintiffs' Counsel $800,000 for past and anticipated future attorneys' fees and expenses regarding the Action, subject to Court approval ("Attorney Fees"). This amount was negotiated and agreed to after the substantive provisions of the settlement were reached and after the memorandum setting forth the material terms of the settlement was executed. Plaintiffs' Counsel, subject to Court approval, intend to pay up to $104,300.00 and $150,000.00 to Glenn Block (or Glenn Block, P.C.) and Daniel Block (or DSB Consulting, Inc.), respectively, for their expert services in this Action from the Attorney Fees. Glenn Block was the original plaintiff in the Action and provided technical assistance to Plaintiffs' Counsel regarding eBay's auction practices, the allegations in the Action, the calculation of damages and economic harm, and due diligence. Daniel Block is Glenn Block's son and provided computer, programming and data mining expertise that was otherwise unavailable to Plaintiffs in a timely and efficient manner. Their expertise was unique and necessary for the successful prosecution of the Action.
    eBay shall also separately pay, subject to Court approval, the three Plaintiffs named in the Amended Complaint, $1,000 to reimburse them for their time, costs and efforts in representing the Class.


    III. CONSEQUENCES OF THE SETTLEMENT


    If the Court approves the settlement, a judgment will be entered dismissing the lawsuit with prejudice against eBay and all of its past and present officers, directors, shareholders, employees, insures, agents, representatives, partners, joint-ventures, parents, subsidiaries, affiliates, and attorneys (the "Released Persons"). This means that Members of the Class will be barred from bringing their own lawsuit against any of the Released Persons relating to eBay's alleged practice of raising an eBay bidder's existing bid where no higher competing bid had been made, and where raising the bid was not necessary to meet a reserve minimum. If you do not want to be barred from bring your own lawsuit on such claims, you must validly and timely request exclusion from the Class, as set forth below.


    IV. YOUR OPTIONS


    If you are a Class Member, you have the following options:


    (A) Participate in the settlement. To participate in the settlement, you do not need to do anything. If the Court approves the settlement and the judgment is not successfully appealed, the terms of the settlement will be implemented.


    (B) Request exclusion from the Class and settlement. If you wish to be excluded from the Class and the settlement, you must send a written request for exclusion by regular or express mail, so that it is postmarked no later than January 30, 2007. Your exclusion request must include (1) your name, address, and telephone number; and (2) a statement that you wish to be excluded from the Class and settlement in Rockers v. eBay, Inc., et al., Case No. 1:05-CV-035930. If you submit a valid and timely exclusion request, you will not participate in the settlement. You will not be bound by the judgment dismissing the lawsuit with prejudice as to Released Persons, and your claims will not be released.


    (C) Comment on the settlement. If you remain in the Class, you may comment in support of or in opposition to the settlement. To do so, you must, no later than January 30, 2007, file your comment or objection with the Court and send copies by regular or express mail to Plaintiffs' Counsel at the addresses below:

    The Court:

    Clerk of the Court
    SUPERIOR COURT OF THE STATE OF CALIFORNIA
    COUNTY OF SANTA CLARA
    Civil Division
    191 North First Street
    San Jose, CA 95113

    Plaintiffs' Counsel:

    Jeffrey D. Light
    LERACH COUGHLIN STOIA GELLER
    RUDMAN & ROBBINS LLP
    655 West Broadway, Suite 1900
    San Diego, CA 92101-3301



    Your written comment or objection must include (1) your name, address, and telephone number; (2) information sufficient to establish your membership in the Class; (3) a statement of your views; (4) any supporting documentation you wish to submit; and (5) a reference to Rockers v. eBay, Inc., et al., Case No. 1:05-CV-035930. If you wish to appear and present your objection orally at the fairness hearing described in Part V below, your written objection must contain a notice that you intend to appear and be heard, a statement of the positions you intend to present at the hearing, and any supporting arguments. You may, but need not, appear in the lawsuit through your own attorney. If you do so, you will be responsible for your own attorney's fees and expenses.


    V. FAIRNESS HEARING


    A hearing will be held on February 13, 2007, at 9:00 a.m. before the Honorable Jack Komar, Superior Court Judge, in Department 17C at the Santa Clara Superior Old Courthouse, 161 North First Street, San Jose, California 95113. The purpose of the hearing will be to determine (a) whether the proposed settlement including the attorneys' fees and expenses and service awards that eBay has separately agreed to pay should be approved as fair, reasonable and adequate and should be granted; and (b) whether the Action and the claims of the Members of the Class should be dismissed with prejudice pursuant to the settlement. This hearing may be rescheduled 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.


    VI. HOW TO GET MORE INFORMATION


    You can get more information by contacting Plaintiffs' Counsel at the address listed in Part IV (C). Complete copies of the settlement agreement and all other pleadings and papers filed in the lawsuit are available for inspection and copying, during regular business hours, at the Office of the Clerk of the Court, Superior Court of the State of California, County of Santa Clara, Civil Division, 161 North First Street, San Jose, CA 95113.



    PLEASE DO NOT CONTACT THE COURT REGARDING THIS NOTICE.


    DATED: November 8, 2006
    BY ORDER OF THE COURT
    SUPERIOR COURT OF THE STATE OF
    CALIFORNIA, COUNTY OF SANTA CLARA
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  2. #2
    Pac-Man (Level 10) FABombjoy's Avatar
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    If you:
    ...placed a bid
    ...bid again to raise your proxy
    ...and as a result had the current price increase for no reason...

    Then you win, and get nothing. Your settlement goes to charity and lawyers.

  3. #3
    Banana (Level 7) kaedesdisciple's Avatar
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    Yup, lawyers get richer, charities get a little money, and ebay gets nothing more than a slap on the wrist. There are FAR worse things going on inside ebay that should be investigated IMO.

  4. #4
    Bell (Level 8)
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    2.1 million to Charities

    546k to lawyers

    104k Goes to Glenn Block (Original Plantiff-Tech Witness)
    150k goes to Daniel Block(Son of Glenn also Tech Witness)
    These guys noticed the increases were happening and had the techinical know how to explain it in court...They found the lawyers and people to form the class.

    1k JOHN ROCKERS
    1k MARK RAWLING
    1k BRIAN MORK
    These 3 were listed as the complaintents in the settled case, They probably just reprsented the class and showed that they had their bids adjusted unfairly...pretty much got 1k a piece for testimony

    The rest of the class gets jack for settlement and loses their right to bring this same issue to court. If you were part of the class you had until Jan 30 to request to be taken out of the class in writing. If you did leave the class you could have brought your own case against ebay for the same thing if you wanted.

    That's what this says.

  5. #5
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    Wasn't this posted here about a week ago?
    Quote Originally Posted by Edmond Dantes View Post
    I can't tell if we're discussing My Little Pony or Neon Genesis Evangelion anymore.
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