Date: Sun, 14 Jul 1996 01:34:24 -0400 (EDT) From: ptownson@massis.lcs.mit.edu (Patrick A. Townson) Subject: LEGAL NOTICE: America OnLine Class Action Suit LEGAL NOTICE: AMERICA ON LINE CLASS ACTION SUIT SETTLEMENT ANNOUNCEMENT This is a legal notice, and you should read it carefully since your rights may be affected. Show this notice to your attorney and seek your attorney's counsel before responding. Superior Court of the City and County of San Fransisco, California Docket # 971047 Consolidated Hagen, et al vrs. America On Line, Inc. ARE YOU, OR WERE YOU AN AMERICA ON LINE SUBSCRIBER AT ANY TIME BETWEEN JULY 14, 1991 AND MARCH 31, 1996? If so, you are a Member of the Class described below. 1. Several subscribers of America On Line (hereinafter AOL) filed lawsuits in 1994 and 1995 seeking to represent present and past subscribers of AOL and challenging certain of AOL's billing practices. While AOL denies any wrong doing, it wishes to end the lawsuits and settle the claims against it. If the proposed settlement discussed below is approved by the Court as fair, just, and reasonable, persons who are presently or were AOL subscribers at any time between July 14, 1991 and March 31, 1996 (the 'class period') may be entitled to receive a share of the benefits provided for by the settlement. 2. The purpose of this notice is to provide a summary of the claims asserted in the various lawsuits which have since been consolidated under docket 971047 in the Superior Court of the City and County of San Fransisco, CA. This notice also describes your rights and what you can do if you wish to be excluded from the plaintiff class and the settlement. **If you wish to be included in the settlement, you do not have to do anything, except as explained below.** THE SETTLEMENT CLASS 3. The following Settlement Class has been certified for the purpose of the proposed settlement: All persons in the United States who at any time during the period July 14, 1991 through March 31, 1996 were subscribers of AOL. Persons first subscribing *after* March 31, 1996 are NOT members of the class. AOL changed its billing practices at that time, nullifying further complaints by subscribers after that date. For purposes of settlement, the Court has approved the parties' agreement to allow Stephen Anderson, Todd Bandrowsky, John Przygoda, Steven Craig Smith, Paul Boni, Frederick J. DiMarco, David L. Feige, First M. Corp. (a corporation), Fred Glick, Stephen E. Hagen, Marc L. Hoffman, Craig Smith, Kenneth Crystal, and Heather Buchfirer (herein- after 'plantiffs'), subscribers to AOL who originally raised these claims in various lawsuits to represent the interests of all AOL subscribers in the consolidated claim before the Court at this time. The Court has appointed the following attornies as co-lead counsel representing Plaintiffs and the Settlement Class: Max W. Berger G. Oliver Koppell Rochelle Feder Hansen Oren S. Giskan Berstein Litowitz Berger & Zwerling, Schachter, Zwerling & Grossman, LLP Koppell, LLP 1285 Avenue of the Americas 767 Third Avenue New York, NY 10019 New York, NY 10017 Brian W. Newcomb Stephen E. Hagen Attorney at Law Attorney at Law 770 Menlo Avenue Suite 101 1436 Hamilton Avenue Menlo Park, CA 94025 Palo Alto, CA 94301 SUMMARY OF THE CLAIMS AGAINST AOL 4. The cases were filed at various times by individuals and corporations who have been subscribers to AOL. In each case, the plaintiffs believe that AOL did not adequately disclose its policies of adding a fifteen-second connection and fifteen-second disconnection time to the length of each session for billing purposes, and in billing subscribers in one-minute increments rounded up to the next full minute. The plaintiffs believe that AOL's billing practices and methods caused subscribers to incur additional charges for downloading of image files, for delays in connection time and completion of transactions on line due to AOL software and network congestion over which plaintiffs believe AOL had control, and for time spent in 'free' areas but which none the less plaintiffs beleive was in some instances billed for. Plaintiffs allege further that AOL failed or refused to refund unused membership charges to subscribers who cancelled their subscriptions prior to the end of a billing period and that subscribers who cancelled their subscriptions near the end of a billing period were erroneously charged for an additional monthly fee. Plaintiffs allege further that AOL's billing practices unfairly calculated service charges on a per-session basis; that AOL made withdrawals in inappropriate amounts and without authorization from subscriber's checking accounts; and that AOL engaged in false and misleading advertising when stating that its hourly rate was $2.95. 5. AOL completely denies any wrong doing and is completely convinced that the manner in which it has billed its subscribers is proper and adequate. It vigorously denies each and every claim asserted by plaintiffs. Nonetheless, AOL has decided to voluntarily settle these claims pursuant to the terms set out below because it beleives the settlement is in the best interests of itself and its subscribers and because AOL wishes to avoid further time consuming and expensive litigation. PROPOSED SETTLEMENT AGREEMENT 6. The terms of the proposed settlement agreement applicable in the various lawsuits now consolidated are set forth in detail in the parties Stipulation of Settlement of Class Action. This document has been filed with the Superior Court of the City and County of San Fransisco, CA in the action entitled Hagen et al vrs. America Online, Inc. Number 971047 (hereinafter, the 'action'). This document is available to the public to review or copy during regular business hours of the Court, 633 Folsom Street, Second Floor, San Fransisco, CA. **The Court Clerk and other personnel will be unable to assist you in your review of the matter. See details below for how to obtain further assistance.** This is a summary: a) Current subscribers: AOL will provide free time on its service to Settlement Class Members who are subscribers at the time free time is distributed ('current subscribers') by a) crediting the accounts of all current subscribers with one hour of additional free time (in addition to the time included in the monthly minimum service charge), to be used within a four month period after such time is made available to each current subscriber; and b) making available 1.36 million hours of free time by crediting the accounts of current subscribers who, based on AOL's computerized records have paid $300 or more in total lifetime charges for AOL's services (hereinafter 'Heavy Users'). The 1.36 million hours of additional free time will be allocated as follows: Charges paid by current subscribers through May 5, 1996 of $300-$600, one hour; for $601-$900, two hours; for $901- $1200, three hours; for $1201-$1500, four hours; for $1501- $1800, five hours; for $1801-$2100, six hours; for $2101- $2400, seven hours; and one additional hour for each $300 (or fraction thereof) in excess of $2400 in billings. If the 1.36 million hours of free time are not fully distributed pursuant to this formula, any remaining free time will be automatically distributed to Heavy Users pro-rata. Each subscriber will have a four-month period, after the free time is distibuted, to use the free time. The free time should be distributed no later than thirty days after the Court's approval of the settlement is effective. **NO CLAIM SHOULD BE FILED BY CURRENT SUBSCRIBERS SINCE THE DISTRIBUTION OF FREE TIME WILL BE CREDITED AUTOMATICALLY BY AOL UPON APPROVAL OF THE SETTLEMENT.** b) Former Subscribers: AOL will pay up to $500,000 in cash for claims made by members of the settlement class who are not current users and who have paid $300 or more in total lifetime charges for AOL services during the class period as noted above. Former users must submit a claim form to receive their money as described below. The amount to be paid to each claimant will be allocated as follows: For charges paid by former subscribers through May 5, 1996 of $300-$600, $2.95; for $601-$900, $5.90; for $901-$1200, $8.85; for $1201-$1500, $11.80; for $1501-$1800, $14.75; for $1801-$2100, $17.70; for $2101-$2400, $20.65; and an an additional $2.95 for each additional $300 in charges (or fraction thereof) in excess of $2400. In the event the total dollar amount of all valid claims exceeds $500,000 the claims will be prorated so that the total amount paid by AOL for all claims equals $500,000. In the event the total claims paid are less than $500,000 any amounts which remain after reimbursement of certain audit expenses will be donated to consumer-oriented, charitable organizations engaged in issues involving the online and Internet media. A former subscriber may alternatively choose to re-subscribe to AOL and receive an additional one hour of free time (in addition to the time provided to such individuals for resubscribing) to be used in the first four months following re-subscription. Such former subscribers must request the additional one hour free time when resubscribing. c) Former subscriber Proof of Claim form: ** FORMER SUBSCRIBERS WHO WISH TO SUBMIT A CLAIM FOR CASH SUBMIT A COMPLETED PROOF OF CLAIM FORM. THE FORM IS PROVIDED WITH THIS NOTICE. Additional Proof of Claim forms may be obtained by written request from the administrator of the settlement and ONLY from this address: America OnLine Claim Forms PO Box 75999 Oklahoma City, OK 73147-5999 Or, you may call ONLY the phone number 800-471-6148. DO NOT telephone or write America OnLine for information or assistance with your claim. DO NOT telephone or write the Court, the clerk of the court or the attornies for assistance with your claim. Use ONLY the address and telephone number shown above to obtain copies of the claim form. Claim forms must be returned and postmarked no later than November 30, 1996. However, if you are a current subscriber and you cancel your subscription prior to receiving your free time (generally, this would be susbcribers who stop using America OnLine after about November 20, 1996 or during December, 1996 or January, 1997) then you may submit a claim form after the above deadline provided it is submitted within ten days of the date you cancel your subscription. The completed claim form must be mailed ONLY to the address: America OnLine Settlement Administrator PO Box 1559 Odgen, UT 84401 Remember, if you did not pay more than $300 in your lifetime to AOL as of May 5, 1996 or if you joined AOL after March 31, 1996 (and have since cancelled your subscription to the service) then ** YOU ARE NOT ENTITLED TO MAKE A CLAIM FOR CASH DAMAGES**. A Proof of Claim form appears at the conclusion of this notice which you may print out and use. d) Disclosures: For at least a one year period, AOL will include as part of its online service, certain specified disclosures and changes (as set out in the Stipulation of Settlement) in its billing screens, Terms of Service messages, End of Session Message, and in connection with its online clock designed to provide subscribers with additional information about AOL's billing practices. e) Attorney's Fees and Expenses: AOL has agreed to pay plaintiff's attornies' fees and expenses as approved by the Court, in the amount of $2,750,000 (two million, seven hundred fifty thousand dollars). In addition, AOL has paid the costs of providing notice by publication in print and online media. YOUR OPTIONS WITH RESPECT TO THE PROPOSED SETTLEMENT 7. If you are or were a subscriber of AOL during the class period of July 14, 1991 through March 31, 1996, then you are now a member of the settlement class. This notice constitutes legal service to you to apprise you of your rights and obligations under the law. a) If you agree with the settlement, you need do nothing at all to indicate your consent. You will participate in, and be deemed to have agreed to the terms set forth above and below. This also means that you fully, finally and forever release, relinquish and discharge any and all claims, rights (including rights to reimbursement or restitution), demands, actions, causes of action, suits, matters, issues, debts, leins, contracts, liabilities, agreements, costs, expenses or losses of any nature known or unknown arising from the case described herein against the following: America Online, Inc. Steve Case an officer of America Online, Inc. Steve Case an individual James Kimsey an officer of America Online, Inc. James Kimsey an individual and each of their present and past officers, directors, employees, and their predecessors, successors, parents, subsidiaries, affiliates, agents, accountants, attornies, spouses, advisors, representatives, partners, heirs and assigns, whether under federal law or regulation or the laws and regulations of any and all states and the subdivisions thereof which are alleged in the Amended Complaint on file in the Action, or which could or might have been alleged in the Amended Complaint and arise out of or are related to the matters referred to in the Amended Complaint. b) **FIRST YOU SHOULD SHOW THIS NOTICE TO YOUR ATTORNEY AND SEEK COUNSEL BEFORE DECIDING ON A COURSE OF ACTION**. You may decide for whatever reason on advice of your counsel that you do not wish to participate in this class action settlement. If you wish to be excluded from the settlement, you must provide notice as follows: Send a letter postmarked no later than August 23, 1996 which includes your name, address and telephone number along with the name of the case (Hagen vrs. America Online, Inc) and a statement that you do not wish to participate in the settlement. Your notice must be sent to each of the attornies listed below: G. Oliver Koppell Melvin R. Goldman Zwerling, Schachter, Zwerling Morrison & Foerster, LLP & Koppell, LLP 345 California Street 767 Third Avenue San Fransisco, CA 94104 New York, NY 10017-2023 ** DO NOT TELEPHONE the attornies. Your correspondence must be in writing via paper, postal mail.. If you validly and timely request exclusion from the class, you will be excluded from the class. i) you will not be permitted to object to the settlement; ii) you will not be bound by the final judgment of the Court entered in this action; iii) you will not be precluded from otherwise prosecuting any individual claim you wish to make, if timely. c) If you have decided you would like to participate in the settlement you still have the option of objecting to the settlement under the procedures set forth in section 8 below. You may -- it is very recommended but not required -- employ an attorney at your own expense to represent you for this purpose. However, you will be barred from bringing your own individual lawsuit asserting claims in the matters referred to in the Amended Complaint and, if your objection is rejected, you will be bound by the final judgment just as if you had not objected at all. THE SETTLEMENT HEARING 8. A hearing will be held on September 20, 1996 at 9:30 AM at San Fransisco Superior Court, Courtroom of the Honorable A. James Robertson II, 633 Folsom Street, San Fransisco, CA 94107. The purpose of the hearing is for the judge to decide whether the proposed settlement, including the provision for attornies' fees and other related expenses is fair and should be approved. If you decide to participate in the settlement and not request an exclusion, you may come to the hearing to support or object to the settlement or the payment of attornies' fees and reimbursement of expenses. If you wish to object to any of these things, you must file a written copy of your objection with the Court. Kindly research the matter carefully and include pertinent legal citations in your well prepared, well documented and literate objection. If applicable, explain why the settlement is inadequate or unfair in your particular instance and include documentation. Again, it is the Court's recommendation that you seek advice from counsel of your choice before proceeding. If you wish to address the Court in person at the hearing this must be indicated in a separate notice attached to your written objection. The written objection must be mailed or hand-delivered to the Clerk of the Court with copies to the aforementioned attornies no later than August 23, 1996. DO NOT telephone the clerk of the court or the attornies on this matter. ** CLASS MEMBERS WHO DO NOT MAKE TIMELY THEIR OBJECTIONS IN THE MANNER AND FORM DESCRIBED ABOVE WILL BE DEEMED TO HAVE WAIVED ALL OBJECTIONS AND SHALL NOT BE HEARD AT THIS HEARING. ** MORE INFORMATION More information can be obtained by examining and/or making copies of the file on this case at your own expense at the the office of the Clerk of the Court during business hours. Neither the Clerk nor the Clerk's employees will be able to assist you with your research. The publication of this notice is not an expression of any opinion by the Court as to the merits of the lawsuit or the fairness of the proposed settlement. This notice is being published to advise you of the pendancy of the lawsuit, the proposed settlement, and your rights and obligations thereto under the law, so that you and counsel of your choice can detirmine what steps you will take in relation to this action. For the purposes of the matter before the Court you have been given legal service by publication. It is the Court's wish that this notice be given particular attention on the Internet and other online media so that the widest possible number of persons potentially involved will be made fully aware of the matter. Date: July 1, 1996 Published by Order of the San Fransisco County Superior Court Honorable A. James Robertson II San Fransisco County Superior Court Judge ---------- Proof of Claim Form ---------- Please print this out and submit it: I am a former subscriber to America Online. I have paid more than $300 in my lifetime to America Online for charges using their service. NAME__________________________________________________________________ ADDRESS_______________________________________________________________ TELEPHONE NUMBER:_____________________________________________________ DATE STARTED SUBSCRIBING TO AOL (APPROXIMATE):________________________ DATE STOPPED SUBSCRIBING TO AOL (APPROXIMATE):________________________ ONE OF MY SCREEN NAMES WAS:___________________________________________ A SECOND SCREEN NAME WAS (if applicable):_____________________________ TOTAL AOL CHARGES THROUGH MARCH 31, 1996 (in some cases billed 5-5-96) WERE: $301-$600______ $601-900________ $900-$1200_________ Other amount (please specify)___________________ Under oath I hereby submit a claim based on the formula set forth in the notice of settlement. I understand that my claim is subject to verification and audit by the Court, and that I may be required to submit further verification to the Court. DATE:________________ SIGNATURE:_____________________________________________________ (You must sign your full name; do not print and do not fail to provide your signature.) Mail claim form to: America OnLine Settlement Administrator P.O. Box 1559 Ogden, UT 84401 REMINDER: You must submit your proof of claim postmarked not later than November 30, 1996. The only exception is for those current subscribers who become former subscribers after November 20, 1996 or during December, 1996 and January, 1997. They are allowed ten days following the date their subscription is cancelled to submit the above form. ---- End of Legal Notice ---- Kindly within reasonable parameters circulate the above notice throughout the Internet community, particularly bringing it to the attention of persons who subscribe to AOL. This was a paid posting via TELECOM Digest. I was paid for my labor in transcribing the notice and entering it into the news feed; NOT for the use of the net or the newsgroups themselves. PAT