PEOPLEPC INC: To Refund Up To $30 as Part of "Nelsen" Suit Deal

Computers and Devices Billing Practices

Class Action Reporter
Jul 31, 2008

A deal resolving a class action lawsuit, captioned "Nelsen v. PeoplePC, Inc., Case No. CGC-07- 460240," has been proposed.

In the lawsuit, the plaintiff alleges that, in the sale and marketing of its dial-up Internet service, PeoplePC takes unfair or unlawful steps to continue charging customers for PeoplePC service even when they request cancellation.

PeoplePC has denied and continues to deny all of the plaintiff's claims. However, while continuing to deny any wrongdoing, the company thinks it desirable to resolve the case on certain terms in order to avoid further expenses, inconvenience, and interference with its ongoing business operations, and to dispose of burdensome litigation. Thus, a settlement agreement has been entered into by both parties to the case.

Under the settlement, claimants may make a claim for a cash refund of up to $30. Specifically, those who submit a valid claim under penalty of perjury will be eligible to receive a cash refund of fees paid after attempting to cancel PeoplePC service, of $3, $5, or up to $30.

Also as part of the settlement, PeoplePC will change its cancellation practices and policies.

Members of the settlement class are those who, between Feb. 6, 2002, and May 12, 2008, paid PeoplePC for Internet service following a cancellation request. To receive the cash payment, class members must submit a completed claim form at by the later of September 7, 2008, or 30 days after the court grants final approval to the settlement.

A hearing has been scheduled in San Francisco Superior Court to PEOPLEPC INC: To Refund Up To $30 as Part of "Nelsen" Suit Deal approve the settlement.

If the settlement is approved, the plaintiff's counsel will apply for an award of attorneys' fees, expenses and incentive awards not to exceed $377,500, to be paid separately from and in addition to the relief available to settlement class members.

Those who wish to exclude themselves from the settlement must submit an exclusion request to the Claim Administrator at this address:

Claim Administrator c/o Rust Consulting Inc. P.O. Box 507 Minneapolis, MN 55440-0507

Objections to the settlement must be filed with the Court and serve it on the parties; counsel at:

Adam Gutride, Esq. Gutride Safier LLP P.O. Box 460026 San Francisco, CA 94146 (counsel for the plaintiff)

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Nathan L. Garroway, Esq. McKenna Long & Aldridge LLP 303 Peachtree Street, NE, Suite 5300 Atlanta, GA 30308 (counsel for PeoplePC)

All objections, requests to intervene and requests for exclusion must be received (not just postmarked) by July 11, 2008, and must comply with the instructions set forth in the Long Form Notice at the settlement Web site.

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