Custom LED, LLC v. eBay Inc.,
UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA; Case No. 3:12-CV-00350 (JST)

Custom LED v. eBay Class Action

Welcome to the official website regarding the settlement of a class action filed against eBay and arising out of listings that sellers placed from January 23, 2008 through February 4, 2013 using  the optional listing upgrade called Featured Plus!. 

The plaintiff in this case alleges that eBay incorrectly described the operation of the Featured Plus! listing upgrade during the time period from January 23, 2008 to February 4, 2013 (when Featured Plus! was discontinued).  The case was filed in the United States District Court for the Northern District of California and is entitled "Custom LED, LLC v. eBay Inc.," Case No. 3:12-CV-00350 (JST) (the "Lawsuit").  eBay denies the allegations in the Lawsuit.  This website is maintained by the Settlement Class Administrator retained and supervised by Lead Plaintiffs' Counsel for the Class Members in the Lawsuit, which is pending in the United States District Court for the Northern District of California.

A. INTRODUCTION

If you are a United States resident and paid Featured Plus! fees for eBay listings in the United States placed after January 23, 2008 (the "Disputed Fees"), you should have received a formal summary legal notice by email or a postcard notice by regular mail, which directed you here for full notice and payment details.  If so, you may be entitled to either a credit or a check under a settlement agreement if it is approved as described below.

The settlement relates to the Lawsuit, which is a class action alleging that eBay improperly described the operation of Featured Plus! during the time period described above.  The Court has not ruled on the validity of the Plaintiff's allegations and eBay denies the allegations.

Details about the Lawsuit can be found on the Court Documents page of this site: Court Documents Page .  The following summarizes how the proposed settlement of the Lawsuit may affect you.

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B. WHO IS COVERED BY THE SETTLEMENT?

On November 20, 2013, for purposes of settlement and by agreement of the parties, the Court approved the plaintiff Custom LED to represent the following people, defined as the "Settlement Class":

all eBay members in the United States who, from January 23, 2008 to February 4, 2013 (the "Class Period") listed items for sale on eBay's websites with the Featured Plus! upgrade, and incurred the Disputed Fees in connection with such listings.

This ruling also allows the law firm of Figari & Davenport, LLP to act as "Class Counsel" for settlement purposes and to represent the Settlement Class.  The Court's ruling does not mean that the Court views the claims in this Lawsuit as having merit or not.  eBay's records were used to send notice to all members of the Settlement Class.

If you believe you are a member of the Settlement Class but you did not get an email or postal mail notice, please double-check your inbox and any spam filters you may have.  If your eBay user ID or other account information has changed during the period from January 23, 2008 to the present, please update your information on the change of information page by clicking here.

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C. WHAT ARE THE TERMS OF THE SETTLEMENT?

On November 20, 2013, the Court preliminarily approved the following Settlement and ordered that Notice be sent to all Settlement Class Members.  The Court will hold a hearing on June 18, 2014 to decide whether to grant final approval of the Settlement, which will affect all Settlement Class Members. 

What Class Members Will Get In the Settlement, If It Is Approved:  Under the Settlement, eBay will establish a Settlement Fund in the amount of $4,750,000.00.  The Settlement Fund will be used to (1) reimburse, in part, Disputed Fees (net of any previous refunds) by the Settlement Class; (2) pay the costs of sending notice, administering the settlement; and (3) compensate Class Counsel and the Class Representative (as discussed further below).  The amount of the Settlement Fund remaining after paying costs of notice, administration, Class Counsel's fees and any enhancement award to the Class Representative is the "Net Settlement Fund."  The present estimate is that the Net Settlement Fund will be over $3 million.

Compensation will be made in different ways, depending on whether or not the Settlement Class Member: (1) has an Active eBay Account or not; (2) closed their eBay Account; or (3) requests a check.  How to get the payment is described in section E below.  The amounts of credits or checks are described below and are calculated the same way, irrespective of whether payment is made by credit or check. 

Each credit or payment will be in proportion to the amount and timing of Disputed Fees paid during the Class Period.  The Net Settlement Fund will be allocated in two time periods:  (1) prior to September 29, 2009 ("Time Period 1"); and (2) on or after September 29, 2009 ("Time Period 2").  One Third (1/3) of the Net Settlement Fund will be allocated to Disputed Fees paid in Time Period 1, and two thirds (2/3) of the Net Settlement Fund will be allocated to Disputed Fees paid in Time Period 2.  The credit due to each Class Member will be determined by the sum of two calculations:  (1) calculating the amount of Disputed Fees that each Class Member incurred in Time Period 1, as a percentage of the total Disputed Fees incurred by all Class Members in Time Period 1, and applying that percentage to the portion of the Net Settlement Fund allocated to Time Period 1; and (2) calculating the amount of Disputed Fees that each Class Member incurred in Time Period 2, as a percentage of the total Disputed Fees incurred by all Class Members in Time Period 2 and applying that percentage to the portion of the Net Settlement Fund allocated to Time Period 2.  To illustrate the calculation above, if the total Disputed Fees incurred by all Class Members was $10,000 in Time Period 1 and also $10,000 in Time Period 2 and a particular Class Member incurred $100 in Disputed Fees in Time Period 1 and $200 in Time Period 2, that Class Member would be entitled to receive 1% of the portion of the Net Settlement Fund for Time Period 1 plus 2% of the portion of the Net Settlement Fund for Time Period 2.

It is impossible to inform you precisely what your recovery will be without knowing the exact amount of the Net Settlement Fund, which will be impacted by the costs of notice, administration, Class Counsel's fees and any enhancement award to the Class Representative.  Plaintiff believes that a reasonable estimate for the Net Settlement Fund is $3,230,000.  This is based on estimates of Plaintiff's attorneys' fees and costs request of $1,212,500, Plaintiff's enhancement fee request of $7,500, and Plaintiff's estimates of the costs for administering the settlement of $300,000.  The actual amount could, of course, be higher or lower depending on the attorneys' fees and costs awarded by the Court and the costs of administering the settlement.  If the Net Settlement Fund is $3,230,000:

  • You will receive approximately 1.8% of what you paid for Featured Plus! during the period between January 23, 2008 and September 28, 2009 period (thus, by way of example, if you paid $19.95 for Featured Plus! between January 23, 2008 and September 28, 2009, you would receive approximately $0.36 from the Net Settlement Fund); and  
  • You will receive approximately 16% of what you paid for Featured Plus! during the period between September 29, 2009 and the present (thus, by way of example, if you paid $19.95 for Featured Plus! between September 29, 2009 and the present, you would receive approximately $3.19 from the Net Settlement Fund).

If the Net Settlement Fund goes up or down by $100,000 due to increased or decreased settlement costs or an increased or decreased award to Plaintiff's counsel, these percentages will increase or decrease by approximately .05% for the first time period (January 23, 2008 to September 28, 2009) and .5% for the second time period (September 29, 2009 to the present).

What Class Counsel Will Ask For From the Court:  Class Counsel will ask the Court for an award of attorneys' fees of twenty-five percent (25%) of the Settlement Fund, or $1,187,500, together with costs to be paid from the Settlement Fund that are estimated to be approximately $25,000.  eBay has agreed not to oppose this request.  Class Counsel's application for fees and costs will be available on the website www.eBayFeaturedPlusClassAction.com on or before January 3, 2014.  Class Counsel will also ask the Court to award $7,500.00 to plaintiff Custom LED for acting as class representative.

What eBay Will Get In the Settlement, If It Is Approved:  In exchange for the payments above, the Settlement Class members will be deemed to have granted the following release of claims:

Upon entry of the Final Order and Judgment, Named Plaintiff and all Class Members who do not validly and timely request to be excluded from the proposed Settlement, and each of their respective successors, assigns, legatees, heirs, and personal representatives release and forever discharge eBay Inc., and each of its respective direct or indirect parents, wholly or majority owned subsidiaries, affiliated and related entities, predecessors, successors and assigns, partners, privities, and any of their present and former directors, officers, employees, shareholders, agents, representatives, attorneys, accountants, insurers, and all persons acting by, through, under or in concert with them, or any of them, from all manner of action, causes of action, claims, demands, rights, suits, obligations, debts, contracts, agreements, promises, liabilities, damages, charges, penalties, losses, costs, expenses, and attorneys' fees, of any nature whatsoever, known or unknown, in law or equity, fixed or contingent, which they have or may have arising out of or relating in any way to any of the legal, factual, or other allegations made in the Action, or any legal theories that could have been raised based on the allegations of the Action (the "Released Claims").

The release means that you, as a Settlement Class Member, will give up your right to file a separate lawsuit on your own behalf in any way related to the allegations made in the Lawsuit.

For details of the terms of the Settlement Agreement, please review the Settlement Agreement available for download by clicking here.

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D. WHAT ARE THE OPTIONS RELATED TO THE SETTLEMENT?

Settlement Class Members have the following options related to the Settlement:

(1) Settlement Class Members can accept the Settlement, in which case they will receive a credit or payment by check in the amount calculated as described in Section C above and as determined based on eBay's records.  Credit or payment will be made as described in section E below, and will usually be made by credit to each Settlement Class member's existing eBay selling account.  Credit to your account is the default in order to avoid the expense of generating and mailing checks to everyone.  Please note that the credit will be applied to any outstanding and unpaid balance, if any, you have with eBay.  However, as described below, you may elect to receive payment by check (rather than an account credit) in certain circumstances.  Settlement Class members will be bound by the terms of the Settlement, including the release of claims against eBay as described in Section C above.  Settlement Class Members may update their account information by clicking here. The amount of credit or check payment will be determined based on eBay's records, and Settlement Class Members will be bound by the terms of the Settlement, including the release of claims against eBay as described in Section C above.

(2) Settlement Class Members can opt out of the settlement, as explained below in Section F.

(3) Settlement Class Members can object to the settlement, as explained below in Section G.

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E. HOW TO RECEIVE SETTLEMENT COMPENSATION

Receiving settlement credit or payment is easy and depends on whether or not a Settlement Class Member: (1) has an Active eBay Account or not; (2) closed their eBay Account; or (3) requested a check.  The amount of the credit or payment is described in section C above.

Active eBay Accounts.  If you have an active eBay account, the amount credited to you will be calculated based on eBay's records and will be automatically credited to your existing eBay selling account.  It is not necessary for you to do anything if your account information is correct.  Please note that the credit will be applied to any outstanding and unpaid balance, if any, you have with eBay.

Inactive eBay Accounts.  If you do not have an active eBay account but you did not close your account (for example, if your account is on hold due to an outstanding negative balance or suspended due to some other issue), then you will automatically be sent a check to the current address information on your account.  It is not necessary for you to do anything if your account information is correct.  If your account information with eBay is not current, please click here to update your account information by no later than March 20, 2014

Closed eBay Accounts.  If you have a closed eBay account, you are entitled to receive a check.  However, no check will be sent automatically and you must provide current address information, because eBay was unable to find contact information for you.  In order to do so, please click here  to update your account information by no later than March 20, 2014

Check Option (Limited):  If you have an active eBay account, your credit is greater than $1.00, and you prefer to receive a check, please contact the Settlement Class Administrator  as described below in order to provide your name and address and to request that a check be sent to you.  You must do so by no later than March 20, 2014.  Please note that for amounts equal to or less than $1.00, no checks will be issued to Active eBay Account holders due to the expenses associated with processing and mailing a check and in order to minimize the costs of administration for the Settlement Class as a whole.  If you request a check, the check amount will not be reduced or offset based on any amounts you owe to eBay.  Please note that, at any time, you may apply for a refund of your eBay credit balance, if any, in accordance with eBay's existing "Requesting a refund of your eBay credit balance" policy, currently available at http://pages.ebay.com/help/sell/refunds.html#what
  
IF YOUR CURRENT EBAY SELLING ACCOUNT INFORMATION DESCRIBED ABOVE IS NOT CORRECT AND YOU DO NOT UPDATE YOUR INFORMATION AS DESCRIBED ABOVE, YOU MAY NOT GET THE BENEFIT OF THE SETTLEMENT. 

Any funds that cannot be distributed will be distributed to (1) the National Cyber-Forensics & Training Alliance ("NCFTA"), a non-profit corporation, established in 1997, dedicated to protecting consumers from cyber crime and fraud; and (2) the National Consumer Law Center ("NCLC"), a nonprofit organization focusing on low income consumer law issues.

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F. HOW TO OPT OUT AND THE EFFECT OF OPTING OUT

Instead of receiving a payment as part of the Settlement, Settlement Class Members may opt out of the Settlement Class.  To make an Opt-Out/Exclusion Request, Settlement Class Members must send by email or mail a letter or postcard to the Settlement Class Administrator stating: (a) the title of the Action:  "Custom LED, LLC v. eBay Inc., Case No. 3:12-00350 JST"; (b) the full name, address, and email address associated with the eBay account of the person requesting exclusion (you may also provide your telephone number if you like); (c) a statement that he/she does not wish to participate in the Settlement; and (d) a signature of the Class Member requesting exclusion.  No Opt-Out/Exclusion Request will be valid unless all of the information above is included.  If submitted by mail, the letter, postcard or form on which the request for exclusion is made must be postmarked on or before March 20, 2014 with postage paid by the person requesting exclusion.  If submitted electronically or by email, the Opt-Out/Exclusion Request must be submitted on or before 11:59 p.m. Eastern Standard Time on March 20, 2014.  Any Class Member who does not serve a valid and timely written Opt-Out/Exclusion Request shall be bound by all subsequent proceedings, orders and judgments.  Only Class Members who serve valid and timely Opt-Out/Exclusion Requests will be deemed to have opted out of the Class, unless the Court orders otherwise.  Requests to Opt-Out should be sent to:

Custom LED v. eBay Exclusions
c/o Dahl Administration
PO Box 3614
Minneapolis, MN 55403-0614

info@eBayFeaturedPlusClassAction.com

If you are a Settlement Class Member and opt out of the Settlement Class, you (1) will not receive any of the credits to be made as part of the Settlement; (2) will not be bound by the final order of dismissal and release in the Lawsuit; and (3) may, if you wish and at your own expense, pursue on your own behalf whatever legal rights you believe you may have.  You will also not be allowed to object to the Settlement if you opt out of the Settlement Class.

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G. HOW TO SUBMIT AN OBJECTION

If you are a Settlement Class Member and have any objections to the Settlement, you must file them with the Court by March 20, 2014. You cannot do this online on this website nor can you simply mail something to the Settlement Class Administrator. It shall be your responsibility to ensure receipt of any objection by the Court, Class Counsel, and eBay's Counsel. To be considered by the Court, the objection must include: (1) a heading containing the name and case number of the Action: Custom LED, LLC v. eBay Inc., Case No. 3:12-00350 JST; (2) the Class Member's name, email address, postal address, and telephone number; (3) a detailed statement of each objection and the factual and legal basis for each objection, and the relief that the Class Member is requesting; (4) a list of and copies of all documents or other exhibits which the Class Member may seek to use at the Fairness Hearing; (5) a statement of whether the Class Member intends to appear, either in person or through counsel, at the Fairness Hearing, and if through counsel, a statement identifying the counsel's name, postal address, phone number, email address, and the state bar(s) to which the counsel is admitted; and (6) a signature of the Class Member or counsel. Neither Class Counsel nor eBay's Counsel may assist you in asserting objections; you will have to object on your own or hire, at your own expense, your own lawyer. Any Class Member who files and serves a written objection has the option to appear at the Fairness Hearing, either in person or through personal counsel hired at the Class Member's expense, to object to the fairness, reasonableness, or adequacy of the Settlement Agreement or the proposed Settlement, or to the award of attorneys' fees and costs. However, Class Members or their attorneys intending to make an appearance at the Fairness Hearing must include a statement of intention to appear in the written objection filed with the Court and delivered to Class Counsel, and eBay's Counsel, and only those Class Members who include such a statement may speak at the Fairness Hearing. If a Class Member makes an objection or appears at the Fairness Hearing through an attorney, the Class Member will be responsible for his or her personal attorney's fees and costs. In order to obtain the necessary addresses for the Court, Class Counsel, and Defense Counsel, please click here to review the page regarding objections.

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H. WHEN WILL THE COURT CONSIDER THE SETTLEMENT?

At 3:00 p.m., PST, on June 18, 2014, the Court will conduct a hearing to determine the fairness of the Settlement and may enter an order finally approving the Settlement. The hearing will take place in the Courtroom of the Honorable Jon S. Tigar, Courtroom 9, 19th Floor, 450 Golden Gate Avenue, San Francisco, CA 94102-3489. Class Counsel will appear on behalf of the Settlement Class.

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I. HOW TO GET MORE INFORMATION

If, after you have read all of the contents of this website, you have further questions about the Lawsuit and Settlement you may contact the Settlement Class Administrator by email at info@eBayFeaturedPlusClassAction.com or call 1-888-744-4635 toll free Monday through Friday, 8:00 a.m. to 5:00 p.m., Central Time.  In addition, all of the court documents are on file with the Clerk of the Court, United States District Court for the Northern District of California, Richard W. Wieking, Court Clerk, United States Courthouse, 450 Golden Gate Avenue, San Francisco, CA 94102, for inspection and copying at your own expense during regular business hours.  The pleadings in the case can also be viewed online through PACER, the Federal Court's online pleadings database.  PACER can be accessed at http://www.pacer.gov, and instructions for how to search for pleadings are provided at that website.

PLEASE DO NOT CONTACT THE COURT, THE CLERK OF THE COURT, OR THE JUDGE ABOUT THIS LITIGATION.

PLEASE ALSO DO NOT CONTACT EBAY OR PAYPAL CUSTOMER SERVICE ABOUT THIS LITIGATION.THEY ARE NOT PERMITTED TO ANSWER YOUR QUESTIONS.

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