NOTICE OF COURT ORDER
For Settlement Approval and Counsel Fee Approval
Paypal Currency Conversion Class Action Settlement
KAPLAN V. PAYPAL CA LIMITED ET AL
. CLASS ACTION
PLEASE READ THIS NOTICE CAREFULLY. IT MAY AFFECT YOUR RIGHTS.
WHAT IS THIS NOTICE ABOUT?
Leonid Kaplan (the Plaintiff) brought a proposed class action in the Ontario Superior Court of Justice against PayPal CA Limited (and related companies). The case challenges PayPal’s currency conversion practices and disclosure on behalf of PayPal users in Canada outside of Quebec. This action is known as Kaplan v. PayPal CA Limited et al., Ontario Superior Court File No. CV-17-587236-CP. There is a companion claim on behalf of Quebec residents that makes similar claims (together, the “Claims”).
WHAT DOES THE PLAINTIFF CLAIM?
The Plaintiff’s allegations relate to the Defendants’ online currency conversion practices. The Plaintiff alleges that PayPal charged users more for currency conversions than it was entitled to under PayPal’s user agreements between January 2017 and August 2018. The Plaintiff also alleges that PayPal performed currency conversions in relation to purchases and withdrawals from PayPal accounts when it was not authorized to do so.
WHAT IS PAYPAL’S RESPONSE TO THE CLAIM?
PayPal denies any liability and denies the truth of the Plaintiff’s allegations.
WHAT IS HAPPENING IN THE CASE NOW?
The Plaintiff and PayPal agreed to settle the Claims. PayPal has agreed to pay a total of $10 million. On February 26, 2021
, the Ontario Superior Court of Justice approved the settlement. The Court decided that the settlement is fair, reasonable, and in the best interests of the class. The Court also approved payment to the Plaintiff’s lawyers of 25% of the settlement payment as their legal fees for the case.
WHO IS IN THE CLASS?
The Court has authorized the class for settlement purposes. The class is defined to include:
All persons resident in Canada other than residents of the Province of Quebec, who:
(1) purchased goods or services using the payments system of PayPal CA Limited, PayPal Canada Co., PayPal Inc. and/or PayPal Holdings Inc. (collectively “PayPal”) in a currency other than the currency in which the goods or services were offered for sale, and who made such a purchase on or before August 8, 2018; or
(2) held an account with PayPal in Canada and who withdrew funds from their account that were converted to Canadian dollars before being transferred to the person’s linked bank account or credit card on or before August 8, 2018.
WHAT ARE THE TERMS OF THE SETTLEMENT?
PayPal has paid $10 million into a settlement fund for this case and the companion case in Quebec.
Ten percent of the portion of the settlement fund that relates to the Ontario lawsuit will be paid to the Class Proceedings Fund. The other amounts to be deducted from the settlement fund are the legal fees and disbursements for the Plaintiffs’ lawyers and the costs associated with administering the settlement. After those deductions, the amount remaining will be distributed to some of the class members. Not all class members will receive a payment from the settlement. The issue in the Claims affected a large number of people (millions) for a relatively small amount of money per person.
The settlement fund will be distributed on a pro rata basis to class members who meet the criteria of the “Active Group”. The Active Group will be include class members who meet the following five criteria:
(1) who are Canadian residents who purchased goods or services between January 14, 2017 and August 8, 2018, using PayPal in a currency other than the currency in which the goods or services were offered for sale;
(2) who are PayPal accountholders;
(3) whose PayPal accounts were still open as of August 2020;
(4) who completed at least one (1) transaction with their PayPal account between August 9, 2019 and January 1, 2021; AND
(5) whose PayPal accounts are not restricted as of the date of payment.
It is anticipated that the pro rata distribution of the settlement to the Active Group will be in the range of CAD $1.85 per person, which will be deposited directly into their PayPal account..
DO I NEED TO DO ANYTHING TO GET A PAYMENT?
No. Class members who meet the criteria set out above do not need to take any action to receive a payment. Payments will automatically be put into those class members’ PayPal accounts..
WHEN WILL I RECEIVE THE PAYMENT?
Class members who are eligible to receive a payment will likely receive the money within the next few months. The process will take some time because there are millions of class members.
WHERE CAN I GET MORE INFORMATION ABOUT THE SETTLEMENT?
Further information about the settlement, including a copy of the settlement agreement, is available at www.PayPalClassActionSettlement.ca . You can also send an email to the lawyers for the class at email@example.com.