Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Facebook Settles Class-Action Lawsuit for $20 Million
Author: Scarinci Hollenbeck, LLC
Date: February 4, 2013
Key Contacts
Back
Members represented in a class-action lawsuit against social media giant Facebook may be entitled to a $10 payout after the networking site agreed to a $20 million-dollar settlement.
The class-action lawsuit revolves around Facebook’s use of members’ names, photos, likenesses and identities in sponsored ads without their permission. This scenario became an issue when the website went public, and members started inquiring about when they would receive payments for Facebook’s use of their information. The social networking site consequently agreed to settle the matter for $20 million outside of court.
While Facebook agreed to the settlement – which may boil down to a payout of $10 per member affected by the lawsuit – some analysts say that many members may be unaware of their rights or of the business law issue itself. Many users may have received an email message from individuals claiming to be part of Facebook’s legal team, and automatically theorized that the content was spam and deleted it. However, the message coming from legalnotice@facebookmail.com is a valid notification that alerts affected members of the settlement and provides instructions on how to claim a portion of the proceeds.
There is one catch, however, that may limit members from receiving their share of the payout. Facebook stipulated in the settlement agreement that if too many people submitted claims for the $10, it would donate the entirety of the funds to charity. While Facebook did not provide a concrete number outlining how many claims is too many, it released a statement explaining that as soon as it becomes “economically infeasible to pay money to persons who make a timely and valid claim,” the whole of the funds would be donated to a not-for-profit organization.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.