Anne Bucher  |  April 1, 2016

Category: Consumer News

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GoDaddy dedicated servers class action lawsuitGoDaddy Inc. has been hit with a class action lawsuit alleging it misrepresents its web hosting services and overcharges for inferior service.

GoDaddy is an internet domain registrar and web hosting company. According to the class action lawsuit, the company offers various forms of server access including cloud hosting, “Virtual Private Servers” and “Dedicated Servers.”

Cloud hosting allows multiple users to share the resources of a single physical server, which are allocated based on demand. With cloud hosting, the performance of one website on a shared host can be significantly affected by traffic that is directed to other websites that share the resources of the physical server.

Virtual private servers are software-based servers that allow several clients to use the resources of the same physical server. Each VPS is allotted a portion of the resources of the physical server, and costs associated with VPS hosting are typically cheaper than the costs associated with dedicated server hosting.

Dedicated servers are designed for the sole use of a user, and grant the user complete control and access to one physical server. With a dedicated server, the performance of the user’s website is not affected by or dependent on any other user.

According to the GoDaddy class action lawsuit, dedicated server configurations are priced from $79.99 per month to $379.00 per month. On the other hand, the virtual private servers are offered at consistently lower prices than dedicated servers. The price of a virtual private server starts at $24.99 per month.

Plaintiffs Mark Schellenbach and William Ryder are website designers based in Los Angeles. According to the GoDaddy class action lawsuit, Schellenback and Ryder purchased a “Dedicated Server” hosting plan maintained by GoDaddy starting in December 2014. They upgraded their package after experiencing “crippling performance issues related to the server.”

When this upgrade did not improve their performance issues, they reportedly hired an independent server expert to figure out the problem. The independent server expert allegedly found that GoDaddy had actually provided them with virtualized servers.

According to the class action lawsuit, “GoDaddy is charging Plaintiffs for superior service while providing inferior service.” Schellenbach and Ryder claim that GoDaddy actively concealed the fact that it provided virtual servers to consumers who paid for the more expensive dedicated server services.

The GoDaddy class action lawsuit brings allegations of fraudulent concealment, negligent misrepresentation, and violations of the Arizona Consumer Fraud Act, California False Advertising Law and California Unfair Competition Law.

Schellenbach and Ryder seek to represent a nationwide Class and a California subclass of consumers who purchased or subscribed to “Dedicated Server” services provided by GoDaddy from October 2014 to the present and received a “virtualized” server.

The plaintiffs are represented by attorneys Kathryn Honecker of Rose Law Group, Stephen R. Basser and Samuel M. Ward of Barrack Rodos & Bacine, John G. Emerson and David G. Scott of Emerson Scott and Christopher D. Jennings of Johnson Vines.

The GoDaddy Dedicated Server Class Action Lawsuit is Mark Schellenbach, et al. v. GoDaddy Inc., Case No. 2:16-cv-00746-DGC, in the U.S. District Court for the District of Arizona.

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28 thoughts onGoDaddy Misrepresents Web Hosting Services, Class Action Alleges

  1. Michele stevens says:

    Please contact me.

    I want to be part of this lawsuit because they sold me a product that is not performing. That is fraud. I have my account documented for the past year over and over again with no resolve. My website was never launched because of the faulty software they sold me.

  2. craig says:

    please contact me as I am not only dealing with the BS charges the are happening. They are also letting me get hacked by another member for 3 years new.

  3. Liz says:

    Go Daddy – clearly advertises that you can cancel your “GoCentral” Webhosting at any time, yet refuses to grant a refund. In the fine print in another part of the website, GoDaddy details there are no refunds. This is false advertising.

  4. Kelly says:

    Is there any way that someone could contact me in regards to this lawsuit. I have a lot to contribute and a long documented history that I’m still trying to settle with Go Daddy on my own. How do I get in touch with this attorney?

    1. Steve says:

      Have you had any contacts yet.

      I have an extreme history as well.

  5. Alisa says:

    Just been swindled by Godaddy and I have a trail of emails to prove it. Companies like this should not be allowed to be in business. They make a profit by deliberately misleading their clients into buying phantom services. In addition, there customer service is a joke. It was like talking to a teenager smacking his gum as he told me a myriad of hypothetical situations as to why I should not be reimbursed. I since have looked online and see they have a history of disgruntled customers with their dishonesty and list of malpractices.

  6. Michelle King Robson says:

    I have had so many instances with godaddy. They have charged me for things I never signed up for. They have misrepresented themselves over and over again. I want to file suit against them. If I go back over the gen years I’ve been with them it’s probably in the 10k plus dollar amount. Adding all kinds of uncharges and when telling them to turn off auto renew they did not do it. I have spent hours dealing with them, trying to get them to refinance my money and fix my accounts. I am sick to death of them getting away with this. I have been a loyal customer and they are crooks. They need to be fined and repay people’s money who they’ve ripped off over and over again.

  7. Brandon says:

    “A dedicated hosting service, dedicated server, or managed hosting service is a type of Internet hosting in which the client leases an entire server not shared with anyone else.” This has nothing to do with virtualization. It just means there is more than one operating system. Such as a Linux operating system running Windows on top. This is actually good for up-time and server stability. Virtualization does not mean it is not dedicated hardware/software. As long as the processor, RAM, network card, etc., are not being shared by other users, then it is still dedicated. However, in terms of verbiage, that can definitely be confusing for the non-technical customer.

  8. Chris Whipple says:

    I searched on lawsuits against Godaddy because of the constant problems I have had with them. The biggest problem was the consistent increase in fees. I would be made to believe that I was all set and then they came back at me for more money. It all started in February of 2013. I set up my account for an agreed upon amount then found additional charges, Not enough for me to chase but frustrating. Two years later I had the same experience and just last month they did it again. I asked to close my account and be refunded but they refused and finally lowered the amount I owed. As for the quality of the product I purchase, I am not impressed but am uncertain what the problem is. My email does not work well compared to other accounts.

  9. Kathleen Widick says:

    I spent over 1800 for a custom designed ecommerce website from goDaddy. After 2 months worth of going back and forth to try and get them to create BASIC things for example: what text or pictures should be in the front page. I requested a refund. They say I am not eligible for a refund because: Professional Web Design Services

    Web Services: 30% cancelation fee when in progress, non-refundable once complete

    This project was NOT completed. I did NOT sign off on it or give my verbal agreement.

    Completion of Service. Publication of your Design is acknowledgement of your satisfaction with the Services provided to date and releases us from any obligation for further revisions or alterations at that time or until the next Update Minutes are initiated. You also acknowledge and agree that once your Design is published, you will not be entitled to any credits or refunds for any reason including, but not limited to, dissatisfaction with your Design.

    They are claiming that when they posted the new website in a non searchable domain for me to review for changes, that that is what they call “Publication of your Design”

    I have the emails from our correspondence.

    1. Richard Pesserl says:

      Exactly the same happened to me. I have all the e-mail exchange to prove it.

  10. BARBARA RAMOS says:

    Hello, I am here reading about this lawsuit againts Godaddy and I would like to explain you what they did to the data I had in the hosting with them.
    Plus the unprofessional way they are handling this situation, please contact me asap and I will give you more details of this matter.
    Thanks a lot and looking forward to be assisted by your laywers,
    Barbara Ramos
    407-218-1069

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