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1. What Is This "Notice" E-Mail Talking About?
The "Notice" you received by e-mail refers to the settlement of a class action lawsuit (discussed in the next paragraph). You received the Notice because you may be a member of the Class and as a member of the Class, you may be able to recover a cash payment by making a settlement claim. You are not being sued.
In March 2002, a class action lawsuit was filed against PayPal, Inc. in the United States District Court for the Northern District of California in San Jose, California. The lawsuit alleged that PayPal violated a federal statute, entitled the 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, in addition to the claim under the EFTA, 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 parties to the action reached a Settlement and the e-mail letter you received is the "Notice" required under the law to be given to each class member that can be identified with reasonable efforts. Under the terms of the proposed Settlement if youd a PayPal account between October 1, 1999 and January 31, 2004, you may be included in the Settlement Class.
The Notice is provided to you so that you can decide if you want to participate in the Settlement and receive the benefits under the Settlement, or if you want to opt-out (exclude yourself) from the Settlement Class.
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