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
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
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.