Legal News

Which Class is Benefitting the Facebook “Beacon” Class Action Settlement?
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Thursday, the 9th U.S. Circuit Court of appeals ruled 2-1 in favor of Facebook Inc.’s $9.5 million class action settlement regarding violations of member data privacy through the now defunct “Beacon” service. However, the single dissenting judge, Andrew Kleinfeld expressed strong doubts about the settlement and held that the settlement actually, and unfairly, benefitted Facebook and plaintiff attorneys.

Without mincing words, Judge Kleinfeld said the settlement “perverts the class action into a device for depriving victims of remedies … Facebook users who had suffered damages from past exposure of their purchases got no money, not a nickel, from the defendants.” On the other hand, he noted, the settlement enriched both the company and plaintiff lawyers.

Brushing aside Kleinfeld’s dissent and questions the two judges in majority focused on the benchmark of the total sum proposed in the settlement, and not on who was getting the money. Roughly, $3 million has been set aside as attorney fees out of the $9.5 million, and the rest would be given to establish a charitable group focused on researching and maintaining online privacy rights. The people whose data rights were violated, and who led by 19 plaintiffs, sued as a class, would receive nothing.

  
What
Where


Focusing on the question of the amount of the settlement as more important, the court observed, “A $9.5 million class recovery would be substantial under most circumstances … and we see nothing about this particular settlement that undermines the district court’s conclusion that it was substantial in this case.”

The class action arose out of allegations over data privacy by Facebook’s use of the “Beacon” service launched in 2007. Facebook used the service to broadcast the internet activities of users to their Facebook friends without requiring affirmative consent of any user to participate in the program. Being assailed by complaints and negative publicity, ultimately Facebook discontinued the practice.

The case in the 9th Circuit is Ginger McCall vs. Facebook Inc., 10-16380

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Deputy General Counsel / Senior Deputy General Counsel

USA-CA-Sacramento

Cal Cities Culture and Mission Cal Cities is dedicated to creating a collaborative and inclusive ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top