$2M MacKeeper Upgrade Class Action Settlement Proposed

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Last week, the parties in the class action lawsuit accusing ZeoBit LLC of fraudulently inducing consumers into purchasing its software for Macs asked a federal judge to preliminarily approve a settlement deal in which ZeoBit would pay $2 million.

Lead plaintiff Holly Yencha filed the class action lawsuit in Pennsylvania. She alleges that ZeoBit, a software company that provides programs for Macintosh computers, misrepresented their product, MacKeeper, as a program that would fix consumers’ computers when it actually deleted harmless files and generated fake errors.

“Once installed, MacKeeper prompts the user to conduct a diagnostic scan,” according to the MacKeeper class action lawsuit. “This scan purportedly detects errors that lead to the problems identified in ZeoBIT’s marketing materials (i.e., performance issues, security and privacy threats)—problems that MacKeeper is supposedly designed to fix.”

However, after Yencha downloaded the free version and then paid for the upgraded version, she discovered that the program did not work as advertised, according to the MacKeeper class action lawsuit. “Instead, ZeoBIT intentionally designed MacKeeper to invariably and ominously report that a user’s Mac needs repair and is at-risk due to harmful (but fabricated) errors, privacy threats, and other computer problems, regardless of the computer’s actual condition,” Yencha alleges in the MacKeeper class action lawsuit.

According to class action settlement documents filed in Pennsylvania court last week, ZeoBit will be required to reimburse Class Members for the purchase of MacKeeper, up to $40.00. Additionally, any funds not disbursed will be distributed to “cy-pres” recipients who meet work and interest criteria matching that of the settlement Class. “In no event will any portion of the settlement fund be returned to ZeoBit,” according to the motion seeking preliminary approval of the MacKeeper settlement.

Under the terms of the proposed MacKeeper class action settlement, “ZeoBIT has agreed to establish a $2 million non-reversionary settlement fund (the ‘Settlement Fund’) from which (i) all individuals who purchased a paid license for MacKeeper can make a claim for a pro rata payment of up to the full purchase price they paid for each Software license (typically, $39.95), and (ii) the costs of notice and administration, an incentive award to Yencha as Class Representative, and an award of reasonable attorneys’ fees will be paid. And if the Settlement Fund is still not exhausted after each claiming Settlement Class member has received a full refund for their purchase of the Software, any remaining funds will be distributed to independent cy pres recipients whose work and interests align with those of the Settlement Class.”

Yencha is represented by William R. Caroselli of Caroselli Beachler McTiernan & Conboy LLC and Rafey S. Balabanian, Benjamin H. Richman and Courtney C. Booth of Edelson PC.

The MacKeeper Upgrade Class Action Lawsuit is Holly Yencha, et al. v. ZeoBIT LLC, Case No. 2:14-cv-00578, in the U.S. District Court for the Western District of Pennsylvania.

UPDATE: Instructions on how to file a claim for the MacKeeper class action settlement are now available! Click here or visit www.YenchaSoftwareSettlement.com for details.

UPDATE 2: On Mar. 7, 2016, Top Class Actions readers started reporting that they received checks in the mail from the MacKeeper class action settlement!