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McAfee Inc. has reportedly agreed to pay $80 million to resolve a class action lawsuit alleging it automatically renewed customers’ security software subscriptions at a higher price than promised.
Last week, plaintiffs Sam Williamson and Samantha Kirby asked a federal judge to preliminarily approve the proposed McAfee class action settlement, which would offer payment to qualified Class Members and implement important policy changes.
According to the McAfee auto renewal settlement documents, McAfee will change its policy regarding the past product price it lists as a current discount it’s offering.
The security software maker has agreed to only list a past price it has actually charged customers in the last 45 days.
The plaintiffs have asked a judge to certify two Classes: an Auto-Renewal Class and a Reference Price Class.
The proposed Auto-Renewal Class would include consumers in the United States who paid for the automatic renewal for McAfee software between Jan. 10, 2010 and Feb. 10, 2015, and whose first auto-renewal charge was greater than the price paid for the initial subscription license.
The proposed Reference Price Class would include consumers in the United States who initially purchased or manually renewed through McAfee a subscription license for McAfee software from Jan. 10, 2010 to Feb. 10, 2015 at a discounted price.
Under the terms of the proposed McAfee class action settlement, Class Members in the Auto-Renewal Class will be eligible to receive a payment of $11.50, in the form of cash or a McAfee value certificate.
The plaintiffs state that this $11.50 amount represents about half of the overcharge that McAfee allegedly assessed on automatic renewals.
Williamson first filed the McAfee class action lawsuit in January 2014, claiming that McAfee automatically enrolls consumers who purchase a one-year subscription to McAfee software in the automatic renewal program, and charges the consumer’s credit card on file. The automatic renewals occur each year, as long as the consumer remains enrolled in the auto-renewal program.
Although McAfee represents to consumers that their auto-renewal payment will not be more than the normal, then-current price, McAfee actually charges auto-renewal customers more than it charges other customers for the same products, Williamson alleges in the McAfee auto renewal class action lawsuit.
In July 2015, the parties notified the court that they were nearing a settlement and asked the judge to stay proceedings until the class action settlement documents were filed.
A preliminary approval hearing has reportedly been scheduled for Aug. 18.
Instructions on how to file a claim for the McAfee auto renewal class action settlement were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also “Follow” this case by using your free Top Class Actions account to receive notifications when this article is updated.
The consumers are represented by Michael W. Sobol and Roger N. Heller of Lieff Cabraser Heimann & Bernstein LLP; Daniel M. Hattis of Hattis Law and Tina Wolfson, Robert Ahdoot and Theodore W. Maya of Ahdoot & Wolfson PC.
The McAfee Automatic Renewal Pricing Class Action Lawsuit is Sam Williamson, et al. v. McAfee Inc., Case No. 5:14-cv-00158, in the U.S. District Court for the Northern District of California.
UPDATE: The McAfee automatic renewal pricing class action settlement is now open! Click here to file a claim.
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15 thoughts onMcAfee Reaches $80M Auto Renewal Pricing Class Action Settlement
UPDATE: The McAfee automatic renewal pricing class action settlement is now open! Click here to file a claim.
Sorry for typo in previous post. Affected individuals get $11.50. Lawyer get $2.4M.
Lawyers get $2.5M. Affected individuals get $15.
I am angry about this! And I used the auto renewal
I have had McAfee for yrs. and did auto reneal.
I too has MCafee renewal. This the second time a company has done this too me
I have McFee now and have been auto renewed for years
I have had McAfee for years and I am disappointed to find this out.
I have used McAfee for many years also and ow I am real mad to.
I used McAfee many years with auto renewal…now I’m angry about it.