The
reunion site Classmates.com has agreed to pony up to $9.5 million to settle a lawsuit alleging that it duped people into purchasing paid memberships.
The agreement calls for Classmates to pay
$3 each to the estimated 3.16 million users who allegedly purchased "gold" premium memberships after receiving messages indicating that they were being sought out by old schoolmates. Classmates also
agreed to provide other members with $2 credits toward the purchase of a gold membership.
Classmates.com did not admit wrongdoing as part of the proposed settlement. If accepted by U.S. District
Court Judge Richard Jones in Seattle, the deal would resolve a class-action lawsuit filed in 2008.
Classmates is facing a separate potential class-action suit alleging privacy violations. In that
case, members are alleging that the company recently changed its default settings to make more information
about members -- including their names and photos -- available via Facebook, iPhone apps and other sites and devices.
The plaintiffs allege that these new settings could expose them to identity
theft and other security risks. While Classmates said that members could opt out of the change, the plaintiffs allege that the company did not sufficiently explain the ramifications of the new default
settings.