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NOTICE OF HEARING

For Settlement Approval and Counsel Fee Approval


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 have agreed to a proposed settlement of the Claims. As part of the settlement, PayPal has agreed to pay a total of $10 million. The settlement is subject to approval by the Court.

On February 26, 2021, there will be a hearing at which the Court will decide whether to approve the settlement. The Court will also be asked to approve the payment of the Plaintiffs’ lawyers’ legal fees out of the settlement fund. 

If the settlement is not approved, PayPal will oppose certification of the claim as a class action, and if it is certified, will oppose the claim on the merits.

WHAT ARE THE TERMS OF THE PROPOSED SETTLEMENT?


Under the proposed settlement, PayPal will pay $10 million into a settlement fund. In exchange, the Claims will both be dismissed and PayPal will receive releases on behalf of all class members.

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 total settlement fund are the legal fees and disbursements for the Plaintiffs’ lawyers and the costs associated with administering the settlement. The lawyers for the Plaintiff and for the plaintiff in the Quebec case will be seeking to be paid a total of 25 percent of the settlement fund as legal fees for the case. The amount remaining in the fund after those payments would be paid to class members.

WHO IS IN THE CLASS?


The Court has certified the class pending approval of the settlement. 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.
If the settlement is not approved, PayPal will oppose certification of the claim as a class action and the litigation will continue.

WHO GETS A PAYMENT UNDER THE PROPOSED SETTLEMENT?


Not all class members will be entitled to a payment under the proposed settlement. If the settlement is approved, Court-approved legal fees and administration costs will first be deducted. After those deductions, the amount remaining 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 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.

I AM A CLASS MEMBER. WHAT ARE MY OPTIONS?


Class members do not need to take any action to remain part of the class. Class members also do not need to take any action to receive a payment, if the settlement is approved and the class member meets the criteria for payment.

If a class member wants to object to the settlement or opt out of the class, those options are set out below.

HOW DO I OBJECT TO THE PROPOSED SETTLEMENT?


If you are a class member and want to object to the settlement, you are required to submit a written objection to the lawyers for the class so that it is received by 5:00 p.m. on February 22, 2021. You can submit your objection by email, fax, or mail at the contact information below. If you submit an objection, the lawyers for the class will bring it to the attention of the Court. You may also participate in the hearing either personally or by retaining your own lawyer. However, any legal fees you incur will not be paid by the lawyers for the class or from the settlement fund.

To object, you must send your written objection to:

Email: info@paypalclassaction.com
Fax: 416-646-4301 – attn.: PayPal Class Action Objection
Mail: Attn: PayPal Class Action Objection
Paliare Roland Rosenberg Rothstein LLP
155 Wellington Street West, 35th Floor
Toronto, ON  M5V 3H1

HOW DO I OPT OUT OF THE CLASS?


If you do not want to be part of the class, you must opt out in accordance with the settlement agreement. If you opt out, you will not be entitled to any payment from the settlement fund and you will not be bound by any decisions the Court makes in the case.

To opt out, you must send written notice by email, fax, or mail and the notice must be received by 4:00 p.m. on February 23, 2021. The opt out notice must be sent to:

Epiq Class Action Services Canada Inc.
Attention: PayPal Currency Conversion Class Action Settlement – Opt Out
P.O. Box 507 STN B
Ottawa, ON  K1P 5P6
Email: Info@PayPalClassActionSettlement.ca

WHERE CAN I GET MORE INFORMATION ABOUT THE CASE AND THE PROPOSED SETTLEMENT?


Further information about the proposed settlement and the claim, including a copy of the settlement agreement, is available at PayPalClassActionSettlement.ca. You may contact the claims administrator at info@PayPalClassActionSettlement.ca. You can also send an email to the lawyers for the class at info@paypalclassaction.com.
 

Paliare Roland Rosenberg Rothstein LLP
Attention:  PayPal Class Action
155 Wellington Street West, 35th Floor
Toronto, ON M5V 3H1 

e-mail:  info@paypalclassaction.com
Fax:  1-416-646-4301

Exceptional Advocates.

155 WELLINGTON ST WEST, 35th FLOOR TORONTO ON M5V 3H1

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