When you get a fake from E-Bay

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Posted By: Josh K.

D William - you couldnt be more wrong. First, with respect to the paypal class action - by signing that paperwork, you are agreeing to the terms of the settlement. Like any settlement, paypal agreed to settle for some amount less than what the plaintiffs were asking in order to limit their potential losses, if any. The "if any" being the key words - the plaintiffs similarly agreed to settle for s/t less than the full amount of damages they claim in order to guarantee some recovery. Taken out of that settlement, of course, will be costs and fees - thus it doesnt take a math wiz to figure out if you are starting at an amount lower than the requested damages, not everyone will recover in full what they claim to have lost.

I can also tell you, from experience, class actions are very expensive to both the plaintiffs and the defense. Im a corporate defense lawyer and I specialize in employment litigation (ie discrimination, sexual harassment etc.) - I cant tell you how many frivilous lawsuits I have had to defend that, despite winning, have cost my clients six figures in legal fees. That is with only 2 or 3 lawyers staffing the case - not hundreds as are needed large class actions like the the tobacco cases. If its a truly national class action, your likely to have lawfirms around the country working on the case. Now, granted, the defense lawyers are not likely to get a piece of the attorneys fees awarded in a settlement - however, the cost and fees that are rung up by the plaintiffs lawyers are every bit as significant and they have to shoulder the risk of doing all that work for no payday at all as most cases are taken on a contingent basis (ie win and you get x%, lose and get zero). Of course they should benefit from the agreement if they are successful.


As for the plaintiffs and their recovery, well, I can guarantee you that the named plaintiffs (ie those who brought the suit) are typically well compensated - and, if successful, they should be. Unlike you and others who opt in after the suit has been filed and who shoulder no risk in the outcome, the named plaintiffs take on enormous financial risks as they are ultimately responsible for paying costs (such as filing, copying, postage, deposition expenses, etc. which in a class action can enormous), as opposed to legal fees, if they are unsuccessful. They also typically invest substantial time working with their attorneys for prosecute the case.

Finally, if recovering your full $225 was that important to you, you had the option to opt out of the class and pursue the action on your own. You could have done that in small claims court by yourself with no real cost to you. That would have been the best means to ensure your rights are fully protected if you dont like the terms of the settlement.

Everyone likes to bash the lawyers about their fees, but rarely do they have the facts to make a knowing statement. All I ask is that you understand the facts before challenging Adam or others who know what they are talking about.



Oh, and as a defense lawyer - I abhor most class actions. But I recognize the work that is involved and the fact that they are often a necessary evil.