Wednesday, August 30, 2006

The Effect of the Internet on Class-Action Settlements

Recently proposed class-action settlements in a couple of cases (Netflix and Netgear) were opposed by consumers communicating on the Internet. See Evan Schaeffer's comment -- and advice to lawyers handling class actions: The Effect of the Internet on Class-Action Settlements, Illinois Trial Practice Weblog, Aug. 10, 2006.

Interestingly, a consumer who created about a class action posted a comment. Remember the news that Sony and BMG had put some code in music CDs to prevent their being copied, and the code turned out to expose computers to viruses? Mark Lyon, a law student, found his laptop, that he used for school, was crashing and acting up because of this. Naturally, he followed the lawsuits and proposed settlements. He also filed his own action, in January 2006, in Mississippi, where he bought the CD that infected his computer. His site provides information about his suit (including his demand letter, Sony's response, and his complaint), as well as the national class action and various other litigation.

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