Notice of Class Action Settlement (OMS v. Yahoo!)

Discussion in 'Legal Issues' started by lifepower, Aug 31, 2006.

  1. #1
    Hi All,


    Got a letter the other day and then this email with the same content (see below).

    Have anyone heard about this ?? or is this some sort of scam?

    I don't know what to do...

    Regards,

    Jan, Sweden

    :confused:


    Subject: Notice of Class Action Settlement (OMS v. Yahoo!)
    From: "Administrator" <Administrator@omssettlement.yahoo-inc.com>
    Date: Thu, August 31, 2006 4:22 am
    To:
    Options: View Full Header | View Printable Version




    * * * * * * * * * * * * * * * * * * * * * * * * * * *
    * * * * * * * * * * * * * * * * * * * * * * * * * * *

    IMPORTANT:

    To submit a Claim Form for the class action settlement
    described in this Notice, please visit:

    http://www.omsbudgetingsettlement.com

    You will be asked to provide the following information:

    Login:
    Password:


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    * * * * * * * * * * * * * * * * * * * * * * * * * * *

    UNITED STATES DISTRICT COURT

    CENTRAL DISTRICT OF CALIFORNIA

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    * * * * * * * * * * * * * * * * * * * * * * * * * * *

    ONLINE MERCHANT SYSTEMS, INC., an Illinois Corporation,
    on behalf of itself, all others similarly situated,
    and the general public,

    Plaintiff,

    vs.
    OVERTURE SERVICES, INC., a Delaware
    corporation; and YAHOO!, INC., a Delaware corporation,

    Defendants.

    * * * * * * * * * * * * * * * * * * * * * * * * * * *
    * * * * * * * * * * * * * * * * * * * * * * * * * * *

    Case No. 05-4833-RGK (MAN)
    NOTICE OF PENDENCY OF CLASS ACTION, PROPOSED SETTLEMENT
    AND PROPOSED HEARING DATE FOR COURT APPROVAL

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    * * * * * * * * * * * * * * * * * * * * * * * * * * *

    THIS NOTICE MAY AFFECT YOUR RIGHTS

    PLEASE READ ALL OF IT CAREFULLY

    ATTENTION: ALL PERSONS OR ENTITIES WHICH BID AND PAID
    FOR ADVERTISING PLACEMENT IN YAHOO!'S SEARCH MARKETING
    SYSTEM IN AN ADVERTISING AUCTION CONTAINING AT LEAST
    ONE BIDDER WHO USED THE BUDGETING FEATURE AT ANY TIME
    BETWEEN OCTOBER 1, 2004 AND JUNE 1, 2005

    1. Why Did I Get this Notice?

    You have received this Notice because the records of Yahoo!
    indicate that you are a current or former Yahoo! Search
    Marketing account holder who bid and paid for advertising
    placement in Yahoo!'s Search Marketing System at some time
    between October 1, 2004 and June 1, 2005. You are a member
    of the Settlement Class in a proposed class action
    settlement pending in the United States District Court for
    the Central District of California. This Notice provides a
    summary of the terms of the proposed Settlement. It also
    explains the lawsuit, your legal rights under the
    Settlement, what benefits are available to you under the
    Settlement, and how to get them.

    2. What is a Class Action?

    In a class action, one or more individuals or businesses,
    called Class Representatives (in this case Online Merchant
    Systems, Inc.) sue on behalf of others that have similar
    claims. All of these other individuals or businesses are
    members of the "Class." One court resolves the issues for
    all Class Members, except for those who exclude themselves
    from the Class. United States District Judge R. Gary
    Klausner is in charge of this class action.

    3. What are the Critical Dates?

    October 14, 2006
    The last date to submit your Claim Form if you
    are willing to be bound by the Settlement and
    want to receive your share of the settlement
    credits.

    October 14, 2006
    The last date to submit your written
    request to be excluded from the Settlement
    if you are not willing to be bound by it
    and do not want to receive any credit.

    October 14, 2006
    The last date to submit any written objection
    to the Settlement.

    October 23, 2006
    The hearing on any objections and to give final
    approval to the Settlement.

    No earlier than December 7, 2006
    The approximate date payment processing begins
    if there are no objections, appeals, or Court
    ordered extensions.

    4. Why Should I Read this Notice?

    This Notice is given pursuant to an Order of the Court,
    dated August 21, 2006. The purpose of this Notice is to
    inform you that a settlement has been reached between the
    parties in the case ("the Action") on behalf of all persons
    or entities which bid and paid for advertising placement in
    Yahoo!'s Search Marketing System in an advertising auction
    containing at least one bidder who used the budgeting
    feature at any time between October 1, 2004 and June 1,
    2005. You have received this Notice because records indicate
    that you bid and paid for advertising placement in Yahoo!'s
    Search Marketing System in an advertising auction containing
    at least one bidder who used the budgeting feature during
    this period. The Settlement is subject to final approval by
    the Court. If this occurs, the Settlement will result, among
    other things, in (a) a distribution of unrestricted credits
    to the accounts of the Class Members who remain in the Class
    and timely submit a valid Claim Form, and (b) the dismissal
    of the pending Action and the release of certain potential
    or actual claims which Class Members may have against Yahoo!
    This Notice is designed to advise you of how you can
    participate in this Settlement or how to be excluded.

    5. What is the Action About?

    On July 1, 2005, Plaintiff Online Merchant Systems, Inc.
    ("OMS" or "Plaintiff") filed the Action in which OMS alleged
    that Defendants Overture Services, Inc. and Yahoo!, Inc.'s
    ("Yahoo!" or "Defendants") Search Marketing System (the
    "System") contained certain flaws and inadequate
    disclosures. The System is used by advertisers to bid for
    placement of their online advertisements through a bidding
    auction process. The Action alleges that when the System's
    budgeting feature was used, certain advertisers would be
    removed from search results when their daily budgets had
    been fully exhausted, but their bids would remain visible
    for other bidders to see in a manner that did not indicate
    that the advertiser's listings were not currently being
    returned in response to any queries. The Action further
    alleges that this flaw and/or inadequate disclosures
    concerning how the bidding landscape operated, caused
    advertisers to overbid for advertising placement on the
    System. OMS asserted claims on a proposed class-wide basis
    under California state law for unfair business practices and
    false advertising (Cal. Bus. & Prof. Code sections 17200,
    17500 et seq.), unjust enrichment, conversion, and money had
    and received, and sought injunctive and other equitable
    relief, damages, costs and attorneys' fees.

    Yahoo! does not believe it did anything wrong and continues
    to deny all claims and allegations of wrongdoing asserted in
    the Action. The Court has not decided in favor of the
    Plaintiff or Yahoo!. Instead, beginning in March 2006, the
    parties entered into negotiations and participated in a
    session mediated by the Honorable John K. Trotter (Ret.).
    Through this mediation process, the parties were able to
    reach an agreement in principle. By settling the Action,
    both parties avoid the uncertainty and costs of a trial. The
    Settlement provides monetary and other benefits to the
    Class. On June 9, 2006, the parties entered into a formal,
    written Settlement Agreement, which is on file with the
    Court and available at http://www.omsbudgetingsettlement.com. OMS,
    as Representative Plaintiff, and the attorneys appointed by
    the Court to represent the Class, believes that the Settlement
    is fair to Class Members. By this Notice, the Court is not
    expressing any view on the merits of the lawsuit.

    On July 25, 2006, Judge Klausner entered an order granting
    preliminary approval of the Settlement and certifying the
    following Class for settlement purposes: All persons or
    entities which bid and paid for advertising placement in
    Yahoo!'s Search Marketing System in an advertising auction
    containing at least one bidder who used the budgeting
    feature at any time between October 1, 2004 and June 1,
    2005. You received this Notice because you are a member of
    the Class, so you are eligible to participate in the
    Settlement if you choose to.

    6. What Does the Settlement Provide?

    A. Monetary Relief:

    Under the Settlement, Yahoo! will pay a total of $750,000 in
    unrestricted credits to the accounts of participating Class
    Members. Those Class Members who submit a timely and valid
    Claim Form shall be members of the Settlement Class and
    shall receive a credit on their account, which credit may be
    used to pay any or all of the Settlement Class Members'
    account balance, or may be refunded as cash if there is no
    outstanding balance. The Class shall be divided into two
    Sub-Classes: those Class Members who bid and paid for
    advertising placement at any time from October 1, 2004 to
    June 1, 2005 (the "Class Period") and used the budgeting
    feature themselves (the "Budgeting Sub-Class"), and those
    Class Members who bid and paid for advertising placement
    during the Class Period but never used the budgeting feature
    (the "Non-Budgeting Sub-Class"). The credit to each
    Settlement Class Member submitting a valid and timely claim
    shall be determined on a percentage basis based on the
    amount of money spent during the Class Period by each Class
    Member compared to the total amount of money spent by the
    advertisers submitting timely and valid claims. The amount
    spent by Class Members shall be determined based upon
    Yahoo!'s records. Members of the Non-Budgeting Sub-Class
    shall be entitled to their pro rata share of $600,000 which
    shall be available to the Non-Budgeting Sub-Class, and the
    Budgeting Sub-Class shall be entitled to their pro rata
    share of $150,000 available to the Budgeting Sub-Class based
    upon the above formula.

    B. Enhanced Disclosures:

    In addition to the monetary relief described above, Yahoo!
    will take the following actions:

    - Provide additional information to advertisers further
    explaining the function of the budgeting feature and,
    specifically, how advertisers should consider budgeting when
    evaluating how to bid;

    - Provide information to all advertisers who view the bid
    landscape indicating that the bid landscape is not
    instantaneously updated;

    - If displaying to advertisers the bids of advertisers with
    fully exhausted budgets such that the advertisers will not
    appear in listings for the rest of the day, provide clear
    signals visible to humans, Yahoo!-approved third-party
    bidding tools, or bidding robots, that these are "maxed"
    bids belonging to advertisers who will not appear in search
    results for the remainder of the day, such signals to be
    provided as soon as reasonably practicable after the System
    recognizes that the budget is exhausted;

    - Provide the disclosures agreed upon herein in three ways
    such that each advertiser will receive the disclosures at
    least once: (1) at the time of online sign-up for new
    advertisers; (2) on an ongoing basis through a website
    tutorial; (3) to existing advertisers through inclusion in
    emails sent in the normal course of business (e.g.,
    newsletters, update emails);

    - Continue to ensure that bids from advertisers with
    exhausted budgets shall not be considered by Yahoo! in
    calculating the cost-per-click of other bidders;

    - Revise its customer service manual to specifically note
    that customer service representatives should explain,
    when queried about the budgeting feature, that advertisers
    are not charged for bids which do not appear in search
    results.

    Yahoo! may make further revisions to its policies and
    practices in response to changes in market conditions,
    business requirements or applicable law, but if these
    changes occur, they shall be consistent with these enhanced
    disclosures.

    C. Dispute Resolution:

    Yahoo!'s records as to the amount of money paid by the Class
    Member during the Class Period are used for calculating the
    ultimate amount the Class Member may receive. If the
    Settlement is approved, Claimants will be entitled to
    dispute the information in the Claim Form, but only as to
    the amount of money paid by the Class Member during the
    Class Period (that is, the Settlement Class Member can
    object to the amount he or she claims to have paid Yahoo!
    for advertising, but may not dispute the formulas or
    calculations that determined the Claimant's pro rata share.)

    If a Settlement Class Member disputes the accuracy of
    Yahoo!'s records, Yahoo! shall promptly review the disputed
    claim and supporting documents and notify the Settlement
    Class Member and Class Counsel of its determination. If the
    Settlement Class Member continues to dispute Yahoo!'s
    determination, the Settlement Class Member may elect to
    submit the dispute to the Honorable John T. Trotter (Ret.)
    (the "Referee") for a final, binding, non-appealable
    decision with the understanding that the only such
    objections permitted are those which challenge the amount
    paid during the Class Period. Claims that Yahoo!
    believes are fraudulent or contain inaccurate information
    will also be decided in this manner.

    7. How Do I Make a Claim and Get a Payment?

    To make a claim for payment, please complete the Claim Form
    that is available at http://www.omsbudgetingsettlement.com. A
    sample of this Claim Form is attached. Click here to access
    the attached claim form:

    http://content.dynamicmessenger.com/rustconsulting/images/8/SampleClaimForm.pdf

    You will need to (1) fill out the Claim Form electronically;
    and (2) submit the Claim Form electronically on or before
    October 14, 2006. If you are receiving this Notice by U.S.
    Mail, you may either complete the Claim Form that is attached
    to this Notice, or complete the Claim Form that is available at
    http://www.omsbudgetingsettlement.com.

    Your payment will be transferred electronically to your
    Yahoo! account and will be applied to your account balance,
    or if you have no outstanding balance, will be credited to
    your account to either withdraw or use toward a future
    balance.

    8. What Am I Giving Up If I Participate in the Settlement?

    The Settlement provides that once the Court enters an order
    finding the proposed Settlement fair, adequate and
    reasonable, and all appeals have been resolved or all appeal
    periods have expired, those Class Members who have not
    timely requested exclusion from this Action shall be deemed
    to have and by operation of the Judgment shall have fully,
    finally and forever released, relinquished and discharged
    all Released Claims as set forth below.

    Specifically, the Settlement is intended to settle all
    claims against Yahoo! that members of the Settlement Class
    have asserted or could have asserted in the Action based
    upon or in any way relating to Yahoo!'s budgeting feature in
    its Search Marketing System through June 1, 2005. The
    release will extend to Yahoo! and its past or present
    directors, officers, employees, partners, principals, agents
    underwriters, issuers, insurers, co-insurers, reinsurers,
    controlling shareholders, attorneys, any entities involved
    directly or indirectly in this Action in which Yahoo! has
    had a controlling interest or that have controlled Yahoo! at
    any relevant time, accountants, auditors, banks or
    investment bankers, advisors, personal or legal
    representative, predecessors, successors, parents,
    subsidiaries, licensees, divisions, joint ventures, assigns,
    associates, and related or affiliated entities.

    If the Settlement is approved by the Court and not otherwise
    terminated, the Court will dismiss the Action with
    prejudice, and bar and permanently enjoin the named
    Plaintiff and each Class Member from prosecuting the
    Released Claims. As a result, once the Judgment of Court in
    accordance with this Settlement has become final (the
    "Effective Settlement Date"), each of the Class Members and
    their legal successors-in-interest shall be deemed to have
    forever given up any Released Claims against Yahoo! and the
    other released parties. If you bid and paid for advertising
    placement in Yahoo!'s Search Marketing System in an
    advertising auction containing at least one bidder who used
    the budgeting feature at any time between October 1, 2004
    and June 1, 2005, and do not elect to exclude yourself from
    the Settlement Class, you will be deemed to have entered
    into this release and to have released the above-described
    claims. If the Settlement is not approved by the Court or
    does not become final for some other reason, the litigation
    will continue.

    9. Why are Class Counsel Recommending this Settlement?

    Relative to the risks and costs of continuing the
    litigation, Class Counsel believe this Settlement provides a
    favorable recovery which is in the best interests of the
    Class. Class Counsel's collective evaluation in this regard
    is based on the extensive investigation and discovery they
    have undertaken, and upon their experience prosecuting
    similar cases. Absent settlement, Plaintiff would have to
    secure class certification on the claims set forth in the
    Action over the strenuous opposition of Yahoo!.
    Additionally, at trial, Plaintiff would have the burden of
    proof to establish liability and the amount of damages. The
    case involves many unresolved factual and legal issues, some
    of which could be decided against Plaintiff at or before
    trial, and which would jeopardize Plaintiff's ability to
    certify a class or to obtain a favorable judgment and
    preserve it on appeal.

    In addition, settling the case now has the further advantage
    of avoiding the very substantial additional costs and delay
    that further litigation would involve. Yahoo! has made it
    clear that it would likely seek appellate review of a grant
    of class certification outside the Settlement context and
    any final adverse result at trial. Thus, absent settlement,
    it is likely to be years before the litigation ends and
    Class Members receive a monetary recovery, if any. Given
    the costs involved in further litigation and the time-value
    of money, even if a favorable judgment were obtained at
    trial, it could well produce less net recovery to the Class
    Members than the present Settlement.

    10. What If I Do Not Wish to Participate in the Settlement?

    If you do not want to remain a member of the Class and
    participate in the Settlement, then you must email or send
    by mail (to the address indicated on the form) a signed
    Request for Exclusion form. The signed Request for Exclusion
    form must include your name, Yahoo! account number(s),
    address, telephone number, and a statement indicating a
    desire to not participate in the Settlement. You can obtain
    the form at http://www.omsbudgetingsettlement.com. Your signed
    Request for Exclusion must be received by the Settlement
    Administrator, electronically or by first class mail, no
    later than October 14, 2006. If you validly request
    exclusion from the Settlement, (1) you will be excluded from
    the Settlement; (2) you will not share in the proceeds of
    the proposed Settlement which are available for distribution
    as described above; (3) you will not be bound by any
    judgment or release entered in this Action; and (4) you will
    retain the option to pursue your claims, if timely, on an
    individual basis at your own expense against the Defendants.
    If you do not request exclusion, you will be bound by the
    terms of the Settlement, even if you do not file a Claim
    Form.

    rest in the tread...
     
    lifepower, Aug 31, 2006 IP
  2. lifepower

    lifepower Member

    Messages:
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    #2
    Hi All,

    Below is the rest of the emial I recived...

    Regards,

    Jan

    11. How Will the Lawyers for the Class Be Paid?

    From the inception of the litigation in July 2005 to the
    present, Class Counsel have not received any payment for
    their services in prosecuting the case, nor have they been
    reimbursed for any out-of-pocket expenses. If the Court
    approves the proposed Settlement, Class Counsel will make a
    motion to the Court for an award of attorneys' fees and
    reimbursement of expenses of up to $420,000. Class Counsel
    will also seek an enhanced award for the Representative
    Plaintiff in the amount of $2,500. The amount of attorneys'
    fees to be awarded will be subject to the Court's
    discretion, but in any event, will not exceed $420,000.
    Similarly, the amount of the Representative Plaintiff's
    enhanced award, if any, will be subject to the Court's
    discretion, but in any event, will not exceed $2,500. These
    two awards will not affect the $750,000 Settlement Fund or
    the amount awarded to individual, unnamed Class Members.
    Class Counsel's motion will be filed according to the
    applicable rules of court after the hearing on final
    approval of the Settlement.


    12. Can I Comment on the Settlement?

    If you decide to remain in the Class, you may comment in
    support of or in opposition to the Settlement. Your comments
    must be mailed or delivered, such that they are received on
    or before October 14, 2006, as follows: (1) the original
    must be sent to the Court at the following address:

    .....


    Clerk of the Court
    United States District Court for the Central District of California
    255 East Temple Street
    Los Angeles, California 90012

    and (2) copies must be sent to Class Counsel and Defendants'
    Counsel at the addresses listed below.

    Class Counsel
    Mark J. Tamblyn
    WEXLER TORISEVA WALLACE LLP
    1610 Arden Way, Suite 290
    Sacramento, California 95815

    C. Brooks Cutter
    KERSHAW CUTTER & RATINOFF LLP
    980 9th Street, Suite 1900
    Sacramento, California 95814

    Defendants' Counsel
    Gayle M. Athanacio, Esq.
    SONNENSCHEIN NATH & ROSENTHAL LLP
    525 Market Street, 26th Floor
    San Francisco, California
    94105-2708

    Your written comments must contain your name and address, be
    signed by you, and include the reference Online Merchant
    Systems, Inc. v. Overture Services, Inc., Case No.
    05-4833-RGK (MAN). If you object to the Settlement, and if
    you intend to appear at the approval hearing, you must
    include with your written objection a Notice of Intention to
    Appear at the Final Approval Hearing currently set for
    October 23, 2006 at 9:00 a.m. Your Notice of Intention to
    Appear must include a statement that you intend to appear
    and be heard, a statement of the position you intend to
    present at the hearing, and any supporting arguments. You
    will be solely responsible for the fees and costs of your
    attorney, if you intend to appear through an attorney. If
    the Court rejects your objection, you will still be bound by
    the terms of the Settlement.

    If you do not comply with the foregoing procedures and
    deadlines for submitting written comments or appearing at
    the hearing, you will not be entitled to be heard at the
    hearing, contest or appeal from approval of the Settlement
    or any award of attorneys' fees or expenses, or contest or
    appeal from any other orders or judgments of the Court
    entered in connection with the Settlement.

    13. When Will the Court Decide Whether to Approve the
    Settlement?

    The Court will hold a hearing on October 23, 2006 at 9:00
    a.m., before the Honorable R. Gary Klausner, United States
    District Judge, United States District Court for the Central
    District of California, Courtroom 850, 255 East Temple
    Street, Los Angeles, California 90012. The purpose of the
    hearing will be to determine (a) whether the proposed
    Settlement should be approved as fair, reasonable, and
    adequate; and (b) whether the lawsuit and Class Members'
    claims should be dismissed with prejudice pursuant to the
    Settlement. The Court reserves the right to adjourn or
    continue the hearing 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, unless you have
    timely submitted a Notice of Intention to Appear.

    If the Settlement is not approved by the Court, the lawsuit
    will proceed. If there are further actions taken in the case
    that affect your rights, you will receive notice as
    determined by the Court.

    Unless otherwise ordered by the Court, any Class Member who
    does not make his or her objection or opposition in the
    manner provided shall be deemed to have waived all
    objections and opposition to the fairness, reasonableness
    and adequacy of the proposed Settlement, the distribution of
    settlement payments to and among Class Members, the fee and
    expense application, and the incentive payment application,
    and will have no other chance to object or oppose any of
    these items.

    14. Where Can I Find Additional Information?

    If you have questions you may call a special Settlement
    Administration line at 1-800-616-1481 weekdays, 9:00 a.m. to
    5:00 p.m., Pacific Standard Time.

    You can also get more information by writing Class Counsel
    electronically or by first class mail, or by telephoning Class
    Counsel at:

    Mark J. Tamblyn
    WEXLER TORISEVA WALLACE LLP
    1610 Arden Way, Suite 290
    Sacramento, California 95815
    mjt@wtwlaw.us
    (916) 568-1100

    C. Brooks Cutter
    KERSHAW CUTTER & RATINOFF LLP
    980 9th Street, Suite 1900
    Sacramento, California 95814
    bcutter@kcrlegal.com
    (916) 448-9800

    This Notice is only a summary and does not describe all
    details of the Settlement. For full details of the matters
    discussed in this Notice, you may wish to review the
    Settlement Agreement on file with the Court or visit
    http://www.omsbudgetingsettlement.com. Complete copies of the
    Settlement Agreement and all other pleadings and papers filed
    in the lawsuit are also available for inspection and copying
    during regular business hours, at the Office of the Clerk of
    the Court, United States District Court for the Central
    District of California, 255 East Temple Street, Los Angeles,
    California 90012.

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    PLEASE DO NOT TELEPHONE THE COURT OR THE OFFICE OF THE CLERK
    FOR INFORMATION REGARDING THIS SETTLEMENT OR THE CLAIM
    PROCESS.

    BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE CENTRAL
    DISTRICT OF CALIFORNIA

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    Questions? Call 1-800-616-1481


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    Click here to access the attached claim form:

    http://content.dynamicmessenger.com/rustconsulting/images/8/SampleClaimForm.pdf

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    lifepower, Aug 31, 2006 IP