Checkmate vs. Yahoo! Class Action Settlement

Status
Not open for further replies.

jerxs

New member
Jun 24, 2006
1,806
24
0
North East PA
I recieved this e-mail today, dont know how many others recieved the same.


* * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * *

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

WESTERN DIVISION

* * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * *

CHECKMATE STRATEGIC GROUP, INC.,
a Florida corporation, individually, and purportedly
on behalf of all others similarly situated,

Plaintiff vs.,

YAHOO! INC., a Delaware corporation, and DOES 1 THROUGH
100, Inclusive,

Defendants.

* * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * *

Case No.: CV 05-4588 CAS (FMOx)
NOTICE OF PENDENCY OF CLASS ACTION, PROPOSED SETTLEMENT
AND PROPOSED HEARING DATE FOR COURT APPROVAL

* * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * *

THIS NOTICE MAY AFFECT YOUR RIGHTS

PLEASE READ ALL OF IT CAREFULLY

ATTENTION: ALL PERSONS OR ENTITIES WHICH BID AND PAID
FOR ADVERTISING PLACEMENT IN YAHOO!'S SEARCH MARKETING
SYSTEM BETWEEN JANUARY 1, 1998 AND JULY 31, 2006


Dear Yahoo!, Inc. Customer,

This notice (the "Notice") informs you of a proposed
settlement of class action claims against Yahoo!, Inc.
(defined as Yahoo!, Inc., Yahoo! Search Marketing,
Overture Services, Inc., and GoTo.com, Inc.). For the
sake of brevity and clarity, Yahoo!, Inc. will be
referred to for the remainder of this Notice simply as
Yahoo!. This Notice describes the proposed settlement
and informs you of your rights as a settlement class
person. You are being sent this Notice because you have
been identified as a Yahoo! customer who paid for
advertising services between January 1, 1998 and July
31, 2006. Yahoo! has agreed, under the terms of the
Settlement, to provide you with the opportunity to
submit a valid and timely claim form through which you
may be eligible to receive advertising credits.

READ THIS FIRST

1. WHY SHOULD I READ THIS?

This Notice, given pursuant to an Order of the Court
dated June 28, 2006, describes a proposed settlement of
a class action against Yahoo!, and you have been
identified as a Class Member.

2. WHY DID I RECEIVE THIS NOTICE?

You received this Notice because a search of Yahoo!'s
computer records indicates that you are a current or
former Yahoo! account holder who bid and paid for
advertising placement on Yahoo!'s Search Marketing
System at some point between January 1, 1998 and July
31, 2006. This Notice provides a summary of the terms
of the proposed settlement. It also explains the
lawsuit, your legal rights under the settlement, what
benefits are available to you under the settlement, and
how to get them.

3. WHAT IS A CLASS ACTION?

In a class action, one or more individuals or
businesses, called Class Representatives (in this case,
Checkmate Strategic Group, Inc.) sue on behalf of
others that have similar claims. All of these other
individuals or businesses are members of the "class."
One court resolves the issues for all Class Members,
except for those who exclude themselves from the Class.
United States District Judge Christina A. Snyder is in
charge of this class action.

4. WHAT ARE THE CRITICAL DATES?

November 20, 2006
The last date to submit your Assertion of Right
to Participate in Additional Claims Review Process
form, if you wish to be eligible to possibly receive
advertising credits.

October 14, 2006
The last date to submit your written request to
be excluded from the settlement if you are not
willing to be bound by it and do not want to be
eligible to receive advertising credits.

October 14, 2006
The last date to submit any written objection to
the settlement.

November 20, 2006
The hearing on any objections and to give final
approval to the settlement.

5. DO I HAVE TO DO ANYTHING?

The settlement is subject to the approval by the Court.
If the Court approves the settlement and it becomes
effective, you will automatically be eligible to submit
the Assertion of Right to Participate in Additional
Claims Review Process form (hereinafter "Assertion of
Right to Participate"), indicating that you intend to
file a claim form for Yahoo! advertising credits and
will give up your ability to sue Yahoo! over the
subject matter of this case. The Assertion of Right to
Participate form is available for download at
www.checkmatesettlement.com. The form must be printed
out, filled out completely, and mailed via certified or
registered mail to the Claims Administrator at Claims
Administrator, PO Box 1340, Minneapolis, MN,
55440-1340, by November 20, 2006. You may attend the
court hearing described below if you wish, but your
attendance or non-attendance will not affect your
eligibility to submit the Assertion of Right to
Participate form. You do not need to appear in court,
and you do not need to hire an attorney in this case.
You may object to the proposed settlement if you so
desire.

6. WHAT IS THIS CASE ABOUT?

Plaintiff Checkmate Strategic Group, Inc. claims that
Yahoo! has breached its contracts with Class Person and
committed unfair business practices under California
Business & Professions Code § 17200 et seq., including
improperly collecting revenue by charging and/or
overcharging Class Persons for clicks that were click
fraud, click through fraud, fraudulent clicks, click
spam, invalid clicks, unwanted clicks, unqualified
clicks, improper clicks, non-converting clicks,
inadequately converting clicks, clicks that were not
reasonably expected by Class Persons or otherwise
claimed by Class Persons as clicks for which Class
Persons should not have been charged, and improperly
collecting revenue by charging and/or overcharging
Class Persons for clicks where users did not actively
choose the Class Persons' listings (hereinafter
"Challenged Clicks").

A. The Proposed Settlement

Since filing the action, Plaintiff, through Class
Counsel, has conducted an investigation of the facts,
including review of Yahoo!'s billing procedures and
Yahoo!'s click filtering systems, interviews with key
Yahoo! personnel, and has analyzed the relevant legal
and factual issues. Class Counsel obtained substantial
information about the nature and extent of Yahoo!'s
challenged practices through this process.

Although Yahoo! does not believe it has done anything
wrong and continues to deny all claims and allegations
of wrongdoing asserted in the Action, Plaintiff and
Yahoo! agreed to enter into a settlement agreement
after an extensive exchange of information and vigorous
arms-length negotiation. If approved by the Court, the
settlement agreement will result in dismissal of this
case and final resolution of all claims raised. Such
dismissal will release Yahoo! from future liability for
the acts and practices complained of. The settlement
terms are described in full in a document known as
Stipulation and Settlement Agreement (hereinafter
"Agreement")(1). The Agreement is available for your
inspection at the clerk's office of the United States
District Court, Central District of California, Western
Division. The terms of the settlement, in summary form,
are as follows:

i) Yahoo! shall launch an online traffic quality
center, which will be available to its advertisers
within 90 calendar days of the Effective Date of the
settlement. The traffic quality center will include a
resource center which will contain FAQs, best practices
documents, traffic quality articles, enforcement
guidelines, and an advice column.

ii) Yahoo! shall designate a Yahoo! employee as a
traffic quality advocate who will be part of a traffic
quality group to fulfill the function of fielding
advertisers' concerns regarding traffic quality,
including its click fraud prevention efforts, within 90
calendar days of the Effective Date of the settlement.

iii) Within 90 calendar days of the Effective Date of
the settlement, Yahoo! shall start a program in which
it chooses at least three advertisers per year who will
be invited to Yahoo! to obtain special access to the
traffic quality team and additional information with
respect to Yahoo!'s click protection system, subject to
the advertisers' execution of nondisclosure agreements.

iv) Yahoo! shall work with third parties in an effort
to develop industry-wide standards that define click
fraud, set forth standards with respect to the
detection of click fraud and provide the public with
periodic general evaluations regarding the
effectiveness of providers' efforts to filter and
prevent the charging of click fraud to customers.

v) Yahoo! will temporarily lift its 60-day contractual
provision to allow Class Members to make click fraud
claims for the period from January 1, 2004 to July 31,
2006. Any Class Member that wishes to participate in
the additional claims review process will have to
complete the Assertion of Right to Participate form,
and mail by certified or registered mail the completed
form to the Claims Administrator on or before November
20, 2006.
 


B. Attorneys' Fees and Class Representative
Compensation

Class Counsel will request that the Courts award them
attorneys' fees and expenses. They intend to request
$4,950,000 in attorneys' fees plus costs in an amount
not to exceed $25,000. The fees and costs figures were
determined independently of negotiation of the other
terms of the settlement.

Class Counsel's petition for fees and expenses will be
filed with the court no later than October 30, 2006, and
may be reviewed by any interested party. The amount
paid for attorneys' fees, expenses, and costs will be
paid by Yahoo! and so will not diminish or affect any
Credits which Class Members may receive.

7. WHAT AM I GIVING UP IF I PARTICIPATE IN THE
SETTLEMENT?

The settlement provides that once the Court enters an
order finding the proposed settlement fair, adequate,
and reasonable and all appeals have been resolved or
all appeals periods have expired, those Class Members
who have not timely requested exclusion from this
Action shall be deemed to have and by operation of the
Final Judgment shall have fully, finally and forever
released, relinquished, and discharged all Released
Claims as set forth below.

Specifically, the settlement is intended to settle any
and all known and unknown claims from January 1, 1998
through July 31, 2006 against Yahoo! that Class Members
have asserted or could have asserted based upon or in
any way relating to, referring to, or arising out of
the charging or overcharging for Challenged Clicks (the
"Released Claims").

The settlement provides that once the Court enters an
order finding the proposed settlement fair, adequate,
and reasonable and all appeals have been resolved or
all appeals periods have expired, those Class Members
who have not timely requested exclusion from this
Action shall be deemed to have and by operation of the
Final Judgment shall have fully, finally and forever
released, relinquished, and discharged all Released
Claims as set forth below.

The release will extend to Yahoo! and its past or
present directors, officers, employees, partners,
principals, agents, predecessors, successors, parents,
affiliated and sister corporations, subsidiaries,
licensees, divisions, and related or affiliated
entities, and the Yahoo! Ad Partners (defined as all
Persons together with any past or present directors,
officers, employees, partners, principals, agents,
controlling shareholders, predecessors, successors,
parents, affiliated and sister corporations and
subsidiaries of same, that disseminated, displayed,
distributed, delivered, served, published, and/or
otherwise provided any Yahoo! Ad (defined as the
participation and/or the ability to participate in a
system which displays advertising, including without
limitation, titles and descriptions, uniform resource
locators, images, text and all other content delivered,
served, published, and/or otherwise displayed by Yahoo!
and the Yahoo! Ad Partners, including without
limitation, via any and all web sites, e-mails,
applications, and software, including without
limitation domain channels, downloadable applications,
content match, domain match, adware, spyware,
arbitrage, and e-mail campaigns)).

If the settlement is approved by the Court and not
otherwise terminated, the Court will dismiss the Action
with prejudice, and bar and permanently enjoin the
named Plaintiff and each Class Member from prosecuting
the Released Claims. As a result, once the judgment of
the Court in accordance with this settlement has become
final, each of the Class Members and their legal
successors-in-interest shall be deemed to have forever
given up any Released Claims against Yahoo! and the
other Released Parties. If you have purchased
advertising on the Yahoo! Search Marketing System
between January 1, 1998 and July 31, 2006, and do not
elect to exclude yourself from the Class, you will be
deemed to have entered in to this release and to have
released the above-described claims. If the settlement
is not approved by the Court or does not become final
for some other reason, the litigation will continue.
 
8. HOW DO I EXERCISE MY RIGHT TO ADDITIONAL REVIEW OF
MY YAHOO! ACCOUNT?

To exercise your right to additional review of your
Yahoo! account, go to www.checkmatesettlement.com and
print a copy of the Assertion of Right to Participate
form. Fill out the form completely and mail by
certified or registered mail to the Claims
Administrator at Claim Administrator, PO Box 1340,
Minneapolis, MN 55440-1340, on or before November 20,
2006.

9. WHY ARE CLASS COUNSEL RECOMMENDING THIS SETTLEMENT?

Relative to the risks and costs of continuing the
litigation, Class Counsel believe this settlement
provides a favorable recovery which is in the best
interest of the Class. Class Counsel's collective
evaluation in this regard is based on the extensive
investigation and discovery they have undertaken, and
upon their experience prosecuting similar cases. Absent
settlement, Plaintiff would have to secure class
certification on the claims set forth in the Action
over the opposition of Yahoo!. Additionally, at trial,
Plaintiff would have the burden of proof to establish
liability and the amount of damages. The case involves
many unresolved factual and legal issues, some of which
could be decided against Plaintiff at or before trial,
and which would jeopardize Plaintiff's ability to
certify a class or to obtain a favorable judgment and
preserve it on appeal.

In addition, settling the case now has the further
advantage of avoiding the very substantial additional
costs and delay that further litigation would involve.
Yahoo! has made it clear that it would likely seek
appellate review of a grant of class certification
outside the settlement context and any final adverse
result at trial. Thus, absent settlement, it is likely
to be years before the litigation ends and Class
Members receive Credits, if any. Given the costs
involved in further litigation and the time-value of
money, even if a favorable judgment were obtained at
trial, it could well produce less net recovery to the
Class Members than the present settlement.

10. WHAT IF I DO NOT WISH TO PARTICIPATE IN THE
SETTLEMENT?

A. Your Right to Exclude Yourself from the Settlement

As a Class Person, you may elect to exclude yourself
from the class settlement. If you wish to exclude
yourself from the class, you must submit a written
statement requesting exclusion from the Class on or
before October 14, 2006 (hereinafter "Request for
Exclusion"). Such request to be excluded must be
personally executed by the Class Person, contain the
full name, address, telephone number, and account
number(s) of the Class Person requesting exclusion and
the date(s) of the advertising campaign with Yahoo!,
and must be returned to the Claims Administrator at
Claim Administrator, PO Box 1340, Minneapolis, MN
55440-1340, by certified or registered mail. If you
exclude yourself from the Class and the proposed
settlement with Yahoo! is finally approved, you will
not be entitled to receive any benefits of the
settlement and will remain free to pursue any legal
rights you may have against Yahoo! at your own expense,
but the representative plaintiff and their lawyers will
not represent you as to any claims against Yahoo!.

B. Your Right to Appear and Object to the Proposed
Settlement

Any Class Member may appear at the Final Approval
Hearing in person or by a duly appointed authorized
attorney and show cause, if any, why the settlement
should not be approved; provided that (except by
special permission of the court) no Class Member shall
be heard unless, on or before, October 14, 2006, the
Class Member files with the court a written "Notice of
Intent to Appear" to the clerk's address set out below,
setting forth all of the Class Member's objections to
the settlement, and mails copies of all such papers to
Plaintiff's and Yahoo!'s counsel at the addresses
specified below. Any objection must contain (a) a
heading which refers to the Action; (b) the objector's
name, address, telephone number, and Yahoo! account
number(s); (c) a statement whether the objector intends
to appear at the Final Approval Hearing, either in
person or through counsel, and, if through counsel,
identifying counsel by name, address, and phone number;
and (d) a statement of the grounds supporting the
claim.

Plaintiff's Counsel
Brian S. Kabateck
Richard L. Kellner
KABATECK BROWN KELLNER LLP
350 South Grand Avenue 39th Floor
Los Angeles, CA 90071

Yahoo's Counsel
Larry W. McFarland
Dennis L. Wilson
KEATS McFARLAND & WILSON LLP
9720 Wilshire Boulevard
Penthouse Suite
Beverly Hills, CA 90212

C. The Final Approval Hearing

The court will conduct a hearing (the "Final Approval
Hearing") at the United States District Court, Central
District of California, Western Division, in the
courtroom of the Honorable Christina M. Snyder on
November 20, 2006 at 10:00 a.m. (or at the dates and
times to which the court may, without further notice,
reschedule the hearing). The purpose of the Final
Approval Hearing will be to determine whether the
proposed settlement is fair, adequate, and proper; and
whether the courts should enter judgments approving the
settlement, awarding attorneys' fees and expenses, and
dismissing the class action. You have the right, but
are not required to attend. Attendance or
non-attendance will not affect any Credits to which you
may be entitled under the settlement.

11. HOW DO I GET MORE INFORMATION?

A. Availability of the Pleadings, the Agreement, and
Other Papers in this Action

The Agreement, with its exhibits and all other papers
filed with the court relating to this action, are
available for inspection in the offices of the clerk of
the court identified above. The documents on file with
the court may be examined by any Class Member in person
or by counsel during normal court hours each day other
than on Saturdays, Sundays, and legal holidays.

Do not call or write the courts, other than as provided
above.

B. Settlement Administration Line

If you have questions, you may call a special
Settlement Administration line at 1-877-349-6449
weekdays, 9:00 a.m to 5:00 p.m., Pacific Standard Time.

B. Change of Address

If your present address is different from the address
on the envelope in which you received this Notice, or
if you did not receive this Notice directly but believe
you should have, you should call the Settlement
Administration line at 1-877-349-6449 and provide your
new address. Claims Administrator PO Box 1340
Minneapolis, MN 55440-1340

* * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * *

1)The capitalized terms as used in this Notice have the
same meaning as the terms set forth in the Agreement.

* * * * * * * * * * * * * * * * * * * * * * * * * * *
* * * * * * * * * * * * * * * * * * * * * * * * * * *
 
Status
Not open for further replies.