[SGVLUG] class action vs Classmates.com nets $3.93 per abused user

[matti]

fyi - interesting to see what happens...

How lawsuit against Classmates.com ended in paltry $3.93 payouts
Attorneys got paid $800,000; judge on the case sees the injustice.

"The case originated with two lawsuits claiming that Classmates.com had sent out millions of deceptive e-mails telling users that an old friend was trying to contact them, and had viewed their profile or signed their "guestbook." For the great majority, that wasn't true; no one at all had shown an interest in their profile. About 60 million users were contacted, and about 3 million actually took the bait, paying between $10 and $40 to Classmates."

http://arstechnica.com/tech-policy/2012/11/how-lawsuit-against-classmates-com-ended-in-paltry-3-93-payouts/?comments=1#comments-bar


Comment worth sharing:

The problem is not the lawyer charge too much (though they probably are).

The problem is classmate baited 3 million people paying $10-40 for nothing. That's 30 millions+ right there. At the end they only need to pay back 5 million or so after the settlement and legal cost. This suggests in United States of America it is better to scam people first, then pay fraction of a damage to a fraction of the affected users. Heck, even if the judge ordered them to pay $20 to each class member that company still make money over this.

The lawyer may makes a lot of money, but 800,000 is nothing compared to the 30 million that classmate pocket.