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

UPDATE: The Settlement has been finalized. Ebay account credits and checks were issued to eligible class members on February 26, 2015.

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 were sent a formal summary legal notice by email or a postcard notice by regular mail, which directed you here for full notice and payment details. 

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.

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.

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C. WHAT ARE THE TERMS OF THE SETTLEMENT?

What Class Members Get In the Settlement:  Under the Settlement, eBay established 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." 

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.  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.

What Class Counsel Asked For From the Court:  Class Counsel asked 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 agreed not to oppose this request.  The Court approved an award of attorneys' fees in the amount of $1,187,500 and expenses of $26,600.    The Court also approved an incentive award for the class representative in the amount of $7,500. 

What eBay Gets In the Settlement:  In exchange for the payments above, the Settlement Class members are 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").

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 had the following options related to the Settlement:

(1) (1) Settlement Class Members were able to 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. The amount of credit or check payment was 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) (2) Settlement Class Members were able to opt out of the settlement, as explained below in Section F.

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

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E. HOW TO RECEIVE SETTLEMENT PAYMENT

Active eBay Accounts.  If you have an active eBay account, and unless you requested a check from the settlement administrator prior to March 20, 2014, you received an account credit to your existing eBay selling account on February 26, 2015.   Please note that the credit will be applied to any outstanding and unpaid balance, if any, you have with eBay.

Checks were mailed to active eBay account holders if your settlement benefit is greater than $1.00, and you requested a check prior through the settlement administrator prior to March 20, 2015.  Checks were mailed on February 26, 2015. 

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

Inactive eBay Accounts.  If you do not have an active eBay account, then a check was mailed on February 26, 2015 to the current address information on your account. 
  
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 had the option to opt out of the Settlement Class.  If submitted by mail, the letter, postcard or form on which the request for exclusion was made had to 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 had to be submitted on or before 11:59 p.m. Eastern Standard Time on March 20, 2014.  This deadline has passed and requests for exclusion are no longer being accepted.

Any Class Member who did not serve a valid and timely written Opt-Out/Exclusion Request will be bound by all subsequent proceedings, orders and judgments.  Only Class Members who served valid and timely Opt-Out/Exclusion Requests are deemed to have opted out of the Class, unless the Court ordered otherwise. 

If you are a Settlement Class Member and opted 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 were also not allowed to object to the Settlement if you opted out of the Settlement Class.

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G. HOW TO SUBMIT AN OBJECTION

If you are a Settlement Class Member and had any objections to the Settlement, you were required to file them with the Court by March 20, 2014.  This deadline has passed and objections are no longer being accepted.

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H. WHEN WILL THE COURT CONSIDER THE SETTLEMENT?

At 3:00 p.m., PST, on June 18, 2014, the Court conducted a hearing to determine the fairness of the Settlement.  The hearing took 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 appeared 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 and leave a message for for the Settlement Class Administrator.  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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