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This settlement is closed!
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A $400,000 class action settlement will benefit California consumers who purchased subscription computer services from Code42.
Plaintiff Jordan Kissel filed this Code42 class action lawsuit in November 2015. She argues Code42 violated California consumer protection law by failing to properly disclose the terms of its automatically renewing subscription services.
Code42 provides online computer backup and restoration services. Consumers can subscribe to these services in exchange for paying a recurring fee that may be automatically charged to the consumer’s designated payment account.
According to Kissel’s complaint, Code42’s retail website allowed California consumers to purchase an automatically renewing subscription without being presented with the applicable terms and conditions.
While those terms and conditions were available for the consumer to find on the website, Kissel claims the company failed to meet other legal requirements. She says they do not state in clear and conspicuous language that the subscription will continue until the consumer cancels, nor do they describe the applicable cancellation policy.
The terms also did not clearly state that the consumer will be charged automatic payments from a third-party payment method, nor did they state the length of the renewal term, Kissel alleges.
Code42 continues to deny Kissel’s claims. The company maintains it has complied with applicable law at all times.
Under terms of the Code42 class action settlement, Code42 will create a non-reversionary settlement fund worth $400,000. This fund will be used to pay a service award to Kissel, court costs, attorney fees, and the costs of settlement administration. After deducting these costs, the net settlement amount is anticipated to be $247,500, which will be distributed among qualifying Class Members. According to the preliminary approval order, this will equal payments of approximately $7.00 to $7.50 per Class Member.
Code42 has also agreed to modify the way it represents the terms of its automatically renewing services to California consumers.
Notice of the settlement has already been sent to known Class Members. These Class Members will be sent a payment automatically, and do not need to submit a Claim Form to get a payment.
Persons who believe they may be Class Members but did not receive a notice have the option of submitting a Claim Form. Claim Forms must be printed and sent in by mail.
Class Members who want to object to the settlement or be excluded from it must file a written request. For Class Members who did not receive a postcard notice, the deadline for exclusions and objections is Dec. 18, 2017. Postcard notice recipients have a later deadline of Dec. 26, 2018.
Who’s Eligible
The settlement Class covers all consumers in California who purchased any product or service from Code42 under “Automatic Renewal” or “Continuous Service” terms between Nov. 19, 2011 and Nov. 19, 2015 inclusive, and who were later billed for and paid to Code42 any fees for the renewal of the product or service beyond the original term before July 24, 2017.
Potential Award
$7.00 to $7.50
Once other expenses are covered, Class Members can expect to receive payments estimated at $7.00 to $7.50.
Proof of Purchase
No proof of purchase or additional documentation is requested.
Claim Form
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
12/18/2017
Case Name
Kissel v. Code42 Software Inc., Case No. 8:15-cv-01936-JLS-KES, in the U.S. District Court for the Central District of California
Final Hearing
2/9/2018
UPDATE: The California Code42 Software Automatic Renewal Class Action Settlement was granted final approval by the court on March 5, 2018. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
Settlement Website
Claims Administrator
Kissel Settlement Administrator
c/o JND Legal Administration
P.O. Box 6878
Broomfield, CO 80021
1-844-859-6770
Class Counsel
Scott Ferrell
PACIFIC TRIAL ATTORNEYS APC
Defense Counsel
Steven Ellis
Galen Phillips
GOODWIN PROCTER LLP
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