United States District Court For the Western District of Washington
In re Classmates.com Consolidated Litigation, Case No. 09-cv-0045-RAJ
SUPPLEMENTAL NOTICE OF PROPOSED CLASS ACTION SETTLEMENT
TO: ALL MEMBERS OF THE SETTLEMENT CLASS AND SETTLEMENT SUBCLASS, AS DEFINED IN THIS NOTICE
PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY
1. WHY DID I GET THIS SUPPLEMENTAL NOTICE OF SETTLEMENT?
The purpose of this Supplemental Notice is to inform you of a new deadline for objecting to Class Counsel?s request to the Court for an attorneys? fee award in connection with the proposed settlement (the ?Settlement?) that has been reached in the consolidated class action lawsuit entitled In re Classmates.com Consolidated Litigation, United States District Court for the Western District of Washington, Case No. 09-cv-0045-RAJ (the ?Litigation?). Furthermore, this Supplemental Notice is to inform you about the reduction in the attorneys? fee award sought by Class Counsel from $1.3 million to $1.05 million, and the additional cy pres contribution of $500,000 that will be made by Defendants to a charity to be approved by the Court in addition to all of the other benefits set forth in the Settlement, including the Injunctive Relief Terms that are set forth at the end of this Supplemental Notice. Finally, this Supplemental Notice is to inform you that the Court has rescheduled the Final Approval Hearing for the Settlement from October 27, 2010 to December 16, 2010. DO NOT APPEAR IN COURT ON OCTOBER 27, 2010.
2. WHAT IS THIS LAWSUIT ABOUT?
In this Litigation, Plaintiffs assert class action claims against Classmates Online, Inc., Classmates Media Corporation, and United Online, Inc. (?Defendants?). Complaints filed in the action allege, among other things, that Defendants sent e-mail messages to subscribers of
www.classmates.com that were in violation of the law and engaged in conduct that had the potential to violate
www.classmates.com users' privacy rights. Defendants have denied and continue to deny Plaintiffs? allegations and maintain that Defendants have not engaged in any wrongful conduct. Defendants also contend that the Litigation is not suitable for class action treatment. Defendants have nevertheless concluded that it is in their best interests that this Litigation be resolved subject to and on the terms and conditions set forth in the Settlement.
This Settlement is the result of arm?s-length negotiations between Plaintiffs in the Litigation, individually and on behalf of the Settlement Class and Settlement Subclass, and Defendants. Both sides agree that, in light of the risks and expenses associated with continued litigation, this Settlement is fair and appropriate under the circumstances. Plaintiffs further believe that this Settlement is in the best interests of the Settlement Class and Settlement Subclass. Please be advised that the United States District Court for the Western District of Washington has not ruled on the merits of Plaintiffs? claims or Defendants? defenses and, therefore, you should not make any assumptions about the strengths or weaknesses of the claims or defenses in the Litigation.
3. WHO IS COVERED BY THE SETTLEMENT?
For settlement purposes, the parties have stipulated to the certification of a Settlement Class and a Settlement Subclass, as defined below.
?Settlement Class?
All Persons, excluding Settlement Subclass members, residing in the United States who were registered with or subscribed to
www.classmates.com at any time between October 30, 2004 and April 19, 2010.
?Settlement Subclass?
All Persons residing in the United States who registered with or subscribed to
www.classmates.com between January 1, 2007 and April 19, 2010 and who paid for a Gold Membership subscription to
www.classmates.com (and did not previously receive a refund of such payment) as a result of:
Upgrading to a Gold Membership through the process on Classmates.com of seeking to see who visited their Guestbook; or
Upgrading to a Gold Membership after clicking on a link to Classmates.com in a Guestbook email, or Connections email that included a Guestbook subject line, and upgrading to a Gold Membership within the same session activated by clicking on that link or within the same day of clicking on that link; or
Upgrading to a Gold Membership within the same day of receiving a Guestbook email or Connections email that included a Guestbook subject line.
You are receiving this Supplemental Notice because you have been identified from Defendants? records as a potential Settlement Class or Settlement Subclass member. There is no overlap between the membership of the Settlement Class and the Settlement Subclass. If you have any questions regarding this Supplemental Notice, please contact the Classmates Settlement Administrator at the address listed in Section 10 below.
4. DO I HAVE A LAWYER IN THIS CASE?
The Court has authorized the following lawyers to represent you and other Settlement Class and Settlement Subclass members:
KELLER ROHRBACK L.L.P
Mark A. Griffin
Amy Williams-Derry
1201 Third Avenue, Suite 3200
Seattle, Washington 98101
KABATECK BROWN KELLNER L.L.P.
Richard L. Kellner
644 South Figueroa Street
Los Angeles, California 90017
These lawyers are called ?Class Counsel.? You will not be charged for these lawyers? fees. If you want to be represented by your own lawyer, you may hire one at your own expense.
5. HOW WILL CLASS COUNSEL BE PAID?
Class Counsel will ask the Court for attorneys? fees and costs to be paid in conjunction with this Settlement. The original Settlement provided that Defendants agreed not to oppose Class Counsel?s request to the Court for attorneys? fees up to $1.3 million, plus costs. This aspect of the Settlement has been amended so that Defendants have agreed not to oppose Class Counsel?s request to the Court for attorneys? fees up to $1.05 million plus costs. Costs may include participation awards of up to $2,500 for each of the two Lead Plaintiffs. Fees and costs that are awarded by the Court will be paid by Defendants separately and will not affect your entitlement to benefits under this Settlement. You will not be obligated to pay any attorneys? fees or costs as a Settlement Class or Settlement Subclass member, nor will any award of attorneys? fees, costs, or participation awards by the Court reduce the amount of Settlement benefit available to Settlement Class or Settlement Subclass members. In addition, the Settlement has been amended to provide for a cy pres payment of $500,000 to a charity to be approved by the Court in addition to all of the other benefits set forth in the Settlement.
A copy of Plaintiffs? Motion For Award Of Attorneys? Fees And Costs And Participation Awards To The Class Representatives (?Fee Request?), including a detailed accounting of the time and expenses spent by Class Counsel on the Litigation, will be filed with the Court by October 12, 2010, and will be available at the following website:
WWW.CMEMAILSETTLEMENT.COM.