Facebook Facing Payments in Class Action Suit
Some Facebook users may be receiving cash from the world’s most popular social media website as a result of a class action suit claiming its use of many members’ names and faces accompanying brand advertisements was illegal.
Facebook members who felt that their names and images were used without their permission in Facebook’s ill-advised “Sponsored Stories” segments, have until this May to submit a claim to receive compensation.
Although Facebook originally agreed to pay out a total of $20 million to settle the lawsuit in addition to clarifying its “Sponsored Stories” rules online, if more Facebook members apply to receive a payment than there is money available in the fund set aside for this purpose by Facebook, no members will actually receive any cash, with the bulk of the settlement money going instead to selected charity organizations.
Facebook originally estimated it would pay each claimant entitled to a settlement between $1 and $10.
As CNN points out, the more people who make claims, the less each individual will receive.
The plaintiffs’ lawyers fees will be deducted from the $20 million settlement fund. (The court is still determining how much they’ll get, but the lawyers have asked for $7.5 million, plus around $283,000 in expenses.) Whatever is left gets divided up by the number of claimants.
Those who received the settlement notice have until May 2, 2013, to decide if they want to submit a claim. A final hearing on the case is slated to take place in June.