What follows is an excerpt from an email I received today regarding a class action suit against Paypal (the formatting errors appeared in the email). I would have copied from the website, but it is apparently not taking requests at this time.

Paypal, for those out at sea since 1999, allows you to make credit card or checking account payments over the internet.* Its a great way to pay Ebay sellers or make online donations without airing your financial information like dirty laundry.

] 3. WHAT IS THIS LAWSUIT ABOUT?
]
] In early 2002, Plaintiffs Roberta Toher and Jeffrey
] Resnick filed separate lawsuits against PayPal, Inc.
] These two cases were later consolidated into one lawsuit
] in the United States District Court for the Northern
] District of California, San Jose Division, entitled In re
] PayPal Litigation, Case No. CV 02 01227-JF (PVT). The
] lawsuit alleges that PayPal violated the federal
] Electronic Fund Transfer Act ("EFTA"), 15 U.S.C. §§ 1693
] et seq., including provisions requiring PayPal to supply
] customers with information about dispute resolution
] procedures and to follow certain procedures when
] investigating complaints of unauthorized or incorrect
] electronic fund transfers. For example, the lawsuit
] claims that PayPal did not provide account statements in
] the manner required by the EFTA. The lawsuit further
] alleges that PayPal has placed inappropriate restrictions
] or other limits on customers' accounts and engaged in
] other improper practices. Based on these practices, the
] lawsuit asserts
]
] claims under California state law
]
] w for conversion, money had and received, negligence, and
] violations of consumer protection statutes.
]
]
] PayPal does not believe that it did anything wrong. In
] fact, PayPal disputes that the EFTA, originally passed in
] 1978, applies to its business. PayPal denies any and all
] liability for the claims alleged in the lawsuit. The
] Court did not decide in favor of the Plaintiffs or
] PayPal. Instead, beginning in the fall of 2003, the
] parties began a series of settlement negotiation sessions
] mediated by United States Magistrate Judge Edward
] Infante. Eventually, in November 2003, both sides agreed
] to a settlement in principle. By settling their claims,
] both parties avoided the uncertainty and cost of a trial.
] The settlement provides money and other benefits to the
] Class. On June 11, 2004, the parties entered into a
] formal, written Settlement Agreement, which is on file
] with the Court and available on the Internet at
] https://www.paypal.com/settlement/. By entering into the
] Settlement Agreement, PayPal is not admitting any
] wrongdoing. PayPal continues to believe that it did not
] do anything wrong. The Representative Plaintiffs
] and the attorneys appointed by the Court to
] represent the Class believe that the settlement is fair
] to Class Members. By this notice, the Court is not
] expressing any view on the merits of the lawsuit.

*alright, so my laymen's definition probably sucks, but c'mon...I'm an ME for crying out loud. :-)

Paypal: Notice of Pendency of Class Action and Proposed Settlement