Snapnames hit with Class Action

**amcdonald** · 11-09-2009, 03:37 PM

source http://www.techcrunch.com/2009/11/09...shill-bidding/

Some things in life are a certainty. Death. Taxes. Lawsuits. An example: If you steal from your customers for half a decade and then force them to sign a no-lawsuit agreement before you give them their money back, you’re going to get sued.

And that’s exactly what happened to SnapNames. Last week the company admitted that an executive has been bidding on auctions for domain names, driving up prices. Money would be refunded, plus interest, said SnapNames, but customers were required to sign an agreement waiving any legal rights.

Today the Cueto Law Group filed a class action lawsuit against SnapNames. The press release is below.

Sadly, most class action lawsuits result in little money ever reaching plaintiffs – only the lawyers make the big dollars. In our opinion criminal charges should be brought against a wide variety of SnapNames executives as well.

The press release:

Class Action Lawsuit Filed Against Domain Name Provider

Lawsuit Alleges that Domain Name Provider Used Shill Bidders to Manipulate Auctions; may be Tip of the Iceberg in Domain Name Industry.

MIAMI, Nov. 9 /PRNewswire/ — A class action lawsuit was filed today in Miami-Dade County Circuit Court on behalf of lead Plaintiff Carlos A. Cueto and others who participated in online auctions for domain names. In the lawsuit, Mr. Cueto alleges that an executive of the company conducting the auctions acted as a shill bidder to manipulate bids. The domain names were auctioned online by Oversee.Net, Inc. subsidiary SnapNames.Com, Inc.

According to the class action complaint, a former vice-president of SnapNames.Com secretly bid on tens of thousands of domain name auctions over the past four years, driving up costs for other bidders. It is alleged that the company executive set up an account on the Defendants’ system under a false name and, under the name, bid in online domain auctions run by SnapNames.Com, Inc. and Oversee.Net. As a result of the internal employee bidding, the suit alleges the prices to purchase a domain name were falsely inflated, leading to higher costs to buyers and greater profit for the defendants.

The class action lawsuit, brought by the Cueto Law Group law firm, is the first nationwide to allege that a domain name provider used a shill bidder to manipulate auctions. “The domain name industry is the wild west of intellectual property because it remains unregulated. The online community has been up in arms over what they feel has been an opaque system that just begs for transparency. It is impossible to know whether you are bidding against someone that isn’t working or affiliated with the company conducting the auction,” said attorney Santiago A. Cueto.

“Domain names are the last frontier for the average person to stake their claim on some very valuable property. The Defendants’ conduct has made it harder for people to do so and we intend to put a stop to this practice, which we perceive as being a major concern in the industry,” added attorney Santiago A. Cueto.

About: Cueto Law Group, P.L. By combining sophisticated legal representation with the efficiency, focus and personal service of a boutique firm, Cueto Law Group has become the firm of choice for class action and complex international litigation, arbitration and transaction matters. You can learn more about Cueto Law Group by visiting the firm’s website at www.CuetoLawGroup.com and blog at www.IntlBusinessLaw.com.

**hnh** · 11-11-2009, 12:36 AM

The management at Snapnames should be fired.

**Poker** · 11-11-2009, 12:53 AM

Originally Posted by amcdonald

lead Plaintiff Carlos A. Cueto

attorney Santiago A. Cueto.

uhh...anyone else notice this?

**Acro** · 11-11-2009, 12:54 AM

Yeah, yesterday's news.

**Bodis.com** · 11-11-2009, 01:38 AM

Originally Posted by Poker

uhh...anyone else notice this?

Yeah two wise people that know there is no need for third party "lawyers". I hate lawyers. It's not a profession in my books.

**CureCancer** · 11-11-2009, 01:39 AM

Thank GOD - its about time for this news.

**Acro** · 11-11-2009, 01:46 AM

Originally Posted by ShytKicker

Yeah two wise people that know there is no need for third party "lawyers". I hate lawyers. It's not a profession in my books.

Hm, actually....The benefits of being both a domainer and a lawyer: you can file your own class action lawsuit without worrying about mounting legal expenses.

**fuelcells** · 11-11-2009, 11:50 PM

Originally Posted by ShytKicker

Yeah two wise people that know there is no need for third party "lawyers". I hate lawyers. It's not a profession in my books.

I hear ya.... I've only met one ethical one in my life unfortunately.

There may have been one or two names that I've won there before, but I don't think Halvarez was involved, so I'm probably not affected...

**victornumber** · 11-12-2009, 12:06 AM

Lol

**fuelcells** · 11-12-2009, 12:09 AM

"Maria Di Mastroyanno feels Halvarez has been actively stealing the bread from the mouth of her family for years now"
those articles are 2 funny... omg...

**draggar** · 11-12-2009, 06:37 AM

Originally Posted by Poker

uhh...anyone else notice this?

It's Miami - Spanish last names there are more common than German names in Germany. Seriously.

**Anthony Ng** · 11-12-2009, 06:59 AM

Originally Posted by fuelcells

I hear ya.... I've only met one ethical one in my life unfortunately.

To be fair, there are decent people in the legal profession. Because of my personal/family connections, I do know quite a few lawyers. Yes, there are those who simply play out the game (by the rules of course), but many others do take their clients' benefits into consideration and are professional. And there are also those who entered this profession with JUSTICE in mind WHEN THEY WERE YOUNG; sadly, this last batch of people (at least the handful that I know) never make their way "up the ladder" and very often let go, or end up in non-profit organizations, or even non-legal capacities.

**stewie** · 11-12-2009, 07:40 AM

I'm sure there will be more lawsuits.

Criminal charges should have be laid by Oversee.net , still wondering if they have or why not?

**PokerPie** · 11-13-2009, 01:44 AM

Originally Posted by stewie

I'm sure there will be more lawsuits.

Criminal charges should have be laid by Oversee.net , still wondering if they have or why not?

Because they likely knew about this a long time ago and could wind up in jail too? They are playing pin-the-tail-on-the-halvarez and hoping everybody believes it. It is obvious though there were many more people involved. Oversee.net isn't going to press charges on anybody, if they did, those people would start talking to reduce their sentences, and the whole oversee empire might be brought to its knees.

**mvl** · 11-13-2009, 04:12 AM

Class action against Snapnames will only get you more money that the rebate offered under the fall-guy assumption. If that assumption does not hold, and Nelson Brady acted as an individual, the rebate offer is very fair and in a class action you will have to use part of your rebate to cover your lawyers fees.

IMO class action should be against Nelson Brady, not Snap.

**Mike Cruz** · 11-13-2009, 07:36 AM

[ ] surprised

**Banned: dn-101** · 11-13-2009, 07:53 AM

Originally Posted by Acro

Hm, actually....The benefits of being both a domainer and a lawyer: you can file your own class action lawsuit without worrying about mounting legal expenses.

Incorrecto!
Only the courts can certify your case as a class action suit. And you better be prepared to shell out the the dough UPFRONT. Lots of it.
Why do you think no lawyer lurking here hasn't done any class action cases yet?