eBay Class Action Lawsuit

I thought Members might be interested in this if you were not aware
of it or if you wanted to opt out before yuor deadline expires.

SUPERIOR COURT OF THE STATE OF CALIFORNIA

COUNTY OF SANTA CLARA


JOHN ROCKERS, MARK RAWLING and
BRIAN MORK , On Behalf of Themselves and for
the Benefit of All with the Common or General
Interest, Any Persons Injured, and All Others
Similarly Situated,
Plaintiff,
vs.

EBAY, INC., et al.,

Defendants.

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Case No. 1:05-CV-035930

CLASS ACTION

NOTICE OF SETTLEMENT OF CLASS ACTION


DATE ACTION FILED: 02/17/05





THIS IS A LEGAL NOTICE. YOUR RIGHTS MAY BE AFFECTED.

PLEASE READ IT CAREFULLY.


To: All eBay users from February 16, 2001 to the present. If
you
claim
to have been harmed by eBay raising the eBay bidder's existing bid
where no
higher competing bid had been made and where raising the bid was not
necessary to meet a reserve minimum you are a Member of the "Class"
and
your
rights may be affected by the proposed class action settlement of a
lawsuit
alleging that eBay would automatically increase in certain
circumstances an
existing bid where no competing bid had been made and where it was not
necessary to meet a reserve minimum. eBay denies any and all of the
contentions and allegations of wrongdoing relating to eBay's
increasing
an
existing bid where no competing bid had been made and where it was not
necessary to meet a reserve minimum, and denies that the Members of
the
Class have suffered any damage. This Notice summarizes the terms of
the
settlement, and explains your rights and options under the settlement.


I. THE LAWSUIT


On February 17, 2005, a complaint was filed by plaintiff Glenn
Block
in the Superior Court of the State of California County of Santa
Clara
( the
"Court") as a class action alleging that eBay's automatic increase in
certain circumstances of an existing bid where no competing bid had
been
made and increasing the bid was not necessary to meet a minimum
reserve
was
improper and artificially inflated the bids of eBay buyers, thus
causing
damage to eBay buyers (the "Action"). On April 17, 2006, an Amended
Complaint which, among other things, substituted Plaintiffs John
Rockers,
Mark Rawling and Brian Mork for the original plaintiff was filed in
the
Court. The caption of the Action is Rockers v. eBay, Inc., et al.,
Case
No.
1:05-CV-035930.


II. THE SETTLEMENT TERMS


The parties participated in mediation with the Honorable Read
Ambler
(Ret.) in an effort to resolve the Action. As a result of the
mediation
and
in order to settle the allegations in the Action, eBay has agreed to
cease
the conduct alleged by making the following "curative disclosure"
that
is
relative to the misrepresentations claimed by Plaintiffs:


In response to a system prompt, if a high bidder attempts to
raise
his maximum bid when such bidder is then between bid increments, eBay
shall
first disclose to such bidder the exact amount of any resulting bid
increase
that would otherwise occur by virtue of the bidder raising the
maximum
bid.
By way of illustration only and using the facts set forth in
paragraph
23 of
the Complaint, upon raising the maximum bid once plaintiff had
reached
his
existing bid maximum of $111.00, eBay would disclose whether raising
the
maximum bid level would result in the $111.00 bid being raised to the
next
bid increment over the last competitive bid of $110.00 and, if so,
specify
the exact amount to which the bid would be raised - that is, $112.50.


In addition, eBay has agreed to pay the sum of $2.1 million
("Settlement Fund"). The Settlement Fund will be distributed to one
or
more
federally tax exempt charities chosen by Plaintiffs' Counsel and
approved by
the Court. None of the charities selected by Plaintiffs' Counsel and
approved by the Court shall be directly or indirectly affiliated or
associated with Plaintiffs or their counsel. Based on information
provided
by eBay to Plaintiffs' Counsel, the $2.1 million is estimated to be
approximately 50% of the claimed damages and all other economic harm
allegedly incurred by Members of the Class. Distribution of the
Settlement
Fund to charitable organizations is appropriate because any attempt to
distribute the Settlement Fund to individual Members of the Class -
whose
average recovery would be less than $1.00 - would result in
administrative
costs that would consume any settlement proceeds.
eBay has also agreed to separately pay Plaintiffs' Counsel
$800,000
for past and anticipated future attorneys' fees and expenses
regarding
the
Action, subject to Court approval ("Attorney Fees"). This amount was
negotiated and agreed to after the substantive provisions of the
settlement
were reached and after the memorandum setting forth the material
terms
of
the settlement was executed. Plaintiffs' Counsel, subject to Court
approval,
intend to pay up to $104,300.00 and $150,000.00 to Glenn Block (or
Glenn
Block, P.C.) and Daniel Block (or DSB Consulting, Inc.),
respectively,
for
their expert services in this Action from the Attorney Fees. Glenn
Block was
the original plaintiff in the Action and provided technical
assistance
to
Plaintiffs' Counsel regarding eBay's auction practices, the
allegations
in
the Action, the calculation of damages and economic harm, and due
diligence.
Daniel Block is Glenn Block's son and provided computer, programming
and
data mining expertise that was otherwise unavailable to Plaintiffs in
a
timely and efficient manner. Their expertise was unique and necessary
for
the successful prosecution of the Action.
eBay shall also separately pay, subject to Court approval, the
three
Plaintiffs named in the Amended Complaint, $1,000 to reimburse them
for
their time, costs and efforts in representing the Class.


III. CONSEQUENCES OF THE SETTLEMENT


If the Court approves the settlement, a judgment will be entered
dismissing the lawsuit with prejudice against eBay and all of its
past
and
present officers, directors, shareholders, employees, insures, agents,
representatives, partners, joint-ventures, parents, subsidiaries,
affiliates, and attorneys (the "Released Persons"). This means that
Members
of the Class will be barred from bringing their own lawsuit against
any
of
the Released Persons relating to eBay's alleged practice of raising
an
eBay
bidder's existing bid where no higher competing bid had been made,
and
where
raising the bid was not necessary to meet a reserve minimum. If you
do
not
want to be barred from bring your own lawsuit on such claims, you must
validly and timely request exclusion from the Class, as set forth
below.


IV. YOUR OPTIONS


If you are a Class Member, you have the following options:


(A) Participate in the settlement. To participate in the
settlement, you do not need to do anything. If the Court approves the
settlement and the judgment is not successfully appealed, the terms
of
the
settlement will be implemented.


(B) Request exclusion from the Class and settlement. If
you
wish
to be excluded from the Class and the settlement, you must send a
written
request for exclusion by regular or express mail, so that it is
postmarked
no later than January 30, 2007. Your exclusion request must include
(1)
your
name, address, and telephone number; and (2) a statement that you
wish
to be
excluded from the Class and settlement in Rockers v. eBay, Inc., et
al.,
Case No. 1:05-CV-035930. If you submit a valid and timely exclusion
request,
you will not participate in the settlement. You will not be bound by
the
judgment dismissing the lawsuit with prejudice as to Released
Persons,
and
your claims will not be released.


(C) Comment on the settlement. If you remain in the
Class,
you
may comment in support of or in opposition to the settlement. To do
so,
you
must, no later than January 30, 2007, file your comment or objection
with
the Court and send copies by regular or express mail to Plaintiffs'
Counsel
at the addresses below:

The Court:

Clerk of the Court
SUPERIOR COURT OF THE STATE OF CALIFORNIA
COUNTY OF SANTA CLARA
Civil Division
191 North First Street San Jose, CA 95113

Plaintiffs' Counsel:

Jeffrey D. Light
LERACH COUGHLIN STOIA GELLER
RUDMAN & ROBBINS LLP
655 West Broadway, Suite 1900 San Diego, CA 92101-3301



Your written comment or objection must include (1) your name,
address,
and telephone number; (2) information sufficient to establish your
membership in the Class; (3) a statement of your views; (4) any
supporting
documentation you wish to submit; and (5) a reference to Rockers v.
eBay,
Inc., et al., Case No. 1:05-CV-035930. If you wish to appear and
present
your objection orally at the fairness hearing described in Part V
below,
your written objection must contain a notice that you intend to
appear
and
be heard, a statement of the positions you intend to present at the
hearing,
and any supporting arguments. You may, but need not, appear in the
lawsuit
through your own attorney. If you do so, you will be responsible for
your
own attorney's fees and expenses.


V. FAIRNESS HEARING


A hearing will be held on February 13, 2007, at 9:00 a.m.
before
the
Honorable Jack Komar, Superior Court Judge, in Department 17C at the
Santa Clara Superior Old Courthouse, 161 North First Street, San Jose,
California 95113. The purpose of the hearing will be to determine (a)
whether the
proposed settlement including the attorneys' fees and expenses and
service
awards that eBay has separately agreed to pay should be approved as
fair,
reasonable and adequate and should be granted; and (b) whether the
Action
and the claims of the Members of the Class should be dismissed with
prejudice pursuant to the settlement. This hearing may be rescheduled
without further notice to the Class. You may attend the hearing if
you
wish,
but are not required to do so to participate in the settlement.


VI. HOW TO GET MORE INFORMATION


You can get more information by contacting Plaintiffs' Counsel
at
the
address listed in Part IV (C). Complete copies of the settlement
agreement
and all other pleadings and papers filed in the lawsuit are available
for
inspection and copying, during regular business hours, at the Office
of
the
Clerk of the Court, Superior Court of the State of California, County
of
Santa Clara, Civil Division, 161 North First Street, San Jose, CA
95113.



PLEASE DO NOT CONTACT THE COURT REGARDING THIS NOTICE.


DATED: November 8, 2006
BY ORDER OF THE COURT
SUPERIOR COURT OF THE STATE OF
CALIFORNIA, COUNTY OF SANTA CLARA

On 27 Jan 2007 19:37:27 -0800, RayCanada wrote:
I thought Members might be interested in this if you were not aware
of it or if you wanted to opt out before yuor deadline expires.

SUPERIOR COURT OF THE STATE OF CALIFORNIA

Oh great, some class-action lawyer is going to make my listing
fees go up, and line their pockets. How wonderful.