Facebook Users Receive Notice Of Pending Class Action Settlement

-Law Icon-This afternoon a number of Facebook users received notice of the pending class action law suit in which a $9.5 million independent fund was allocated for projects to promote the cause of online privacy. Facebook has been forced to send out a notification by court order to Beacon users that may have been effected by the service. Ironically, participation in the settlement is “opt-out” only, something that Facebook was criticized for under the Beacon program.

Users received the following email this evening:

Facebook is sending you this notice of a proposed class action settlement that may affect your legal rights as a Facebook member who may have used the Beacon program. This summary notice is being sent to you by Court Order so that you may understand your rights and remedies before the Court considers final approval of the proposed settlement on February 26, 2010.

This is not an advertisement or attorney solicitation.

This is not a settlement in which class members file claims to receive compensation. Under the proposed settlement, Facebook will terminate the Beacon program. In addition, Facebook will provide $9.5 million to establish an independent non-profit foundation that will identify and fund projects and initiatives that promote the cause of online privacy, safety, and security.

For full details on the settlement and further instructions on what to do to opt out of, object to, or otherwise comment upon the proposed settlement, please go to http://www.BeaconClassSettlement.com.

Please do not reply to this email.

So what do settlement participants receive? Nothing aside from knowledge of this settlement. All this money will be used for is to set up a fund and to pay for all the attorney fees. Additionally, $41,500 will be distributed among the 19 class action representatives. While Facebook has already publicly acknowledge this settlement it appears that users are officially being notified of it now.

Update
According to people I’ve spoken to, opt-out settlements are standard for class actions. However it doesn’t take away from the irony!

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9 Comments »

  1. I just received this.

    Comment by Sophie — December 3, 2009 @ 11:04 pm

  2. What's an opt-out settlement?

    PS I never received this email

    Comment by G — December 4, 2009 @ 8:07 pm

  3. I don't understand, I just recieved this too.

    Comment by victoria — December 5, 2009 @ 2:32 pm

  4. The idea is, if you're covered by the class description (see the FAQ at the link above for who's covered) the court will consider everyone who was in the class to have had their "day in court." That means you can't sue Facebook later for this same issue.

    However, all class actions require members to be able to opt-out: this means you request not to be covered by the settlement (so you don't get the benefits that other class members get, but that's nothing here), and you retain the right to sue Facebook on your own later. Opting out doesn't do much for you here, since you'd probably not be able to recover much if you tried to sue Facebook for the Beacon thing yourself; I'd be surprised if you could find a lawyer to take that case.

    Comment by Davis — December 8, 2009 @ 9:56 am

  5. ummm i just got this email. am i in trouble or something? i dont understand

    Comment by jessi — December 8, 2009 @ 1:10 pm

  6. what the heck is beacon? My facebook lost all of my friends and everything. I don't even understand this!

    Comment by Lauren — December 8, 2009 @ 1:56 pm

  7. i just received this, i dont understand it at all..am i in some kind of trouble or what?

    Comment by Carolynn — December 8, 2009 @ 6:47 pm

  8. I received the email too and my heart throbbed too because I thought I was in trouble, after reading everything I realized tha I was not the one in deep trouble.. facebook is. We are just apart of the class action settlement. Anyone who received the email was targeted by this beacon program that facebook has set up without our knowledge. Now I thought and thought until I finally remembered a year or so ago, I visited a website and once I later went onto my facebook page later that day..facebook published what website I went to and what I have done on the website also! I immediately deleted it of my published mini feed,it was invasion of my privacy… this is what all the heat is about folks. Hope I gave u all a better understanding :)

    Comment by Sky — December 9, 2009 @ 9:56 pm

  9. I'm not sure what the benefits are of staying in the class action lawsuit. Nothing was mentioned. Does the non-profit get less money, or do I just loose rights?

    Comment by Tony — December 12, 2009 @ 11:36 am

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