I got an email about this today, probably a lot of you did, and I initially rejected it as pure spam and fraudulant, but something made me check it out. Turns out it's true. Everyone who signed up for Paypal up to January 2004 is eligable. Sounds like the CD prices lawsuit all over again, except the payoffs are likely to be much much less. You can read about it here: http://www.paypalsucks.com/forums/showthread.php?fid=3&tid=5223&old_block=0 Here's the official website... they're having some high traffic issues... http://www.settlement4onlinepayments.com/
It sounds as if this is a merchant only problem, what exactly is paypal doing? I use pay pal to pay for e-bay, but haven't noticed any problems on my end.
looks like paypal was being too aggresive in holding customer money when there was a dispute. If you're a merchant with a claim, you might get $50 or the amount of your substantiated claim. Seems all account holders are eligible to share $1m (possibly $0.03 each per the article) for Paypals failure to provide contact info, maintain records etc. Expect i'll pass on my share. The lawyers are eligible for $3m (less their expenses)
