Blog Settles for $9.5 Million

Posted By Regan Zambri & Long || 16-Mar-2010

Seattle based agreed to settle a lawsuit brought by users of the social network for $9.5 million.    The lawsuit contended that the company essentially tricked people into paying for membership by pretending that their classmates were looking for them.  The new members then often found, after paying for membership,  that their old friends were not actually reaching out to them.  A document filed in the case, indicates that over 3 million members might be eligible for payouts of $3 per member.  Those  who are eligible upgraded to a "gold" membership after being told a classmate was looking to connect with them.  You can read more about this in Todd Bishop’s blog on Techflash.








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