PayPal trial started with Poker and now includes Amazon


As mentioned in June, Chris Moneymaker launched his lawsuit against PayPal on the basis that the company wrongfully seized his fantasy football funds and then confiscated said funds after an undercover investigation. The whole process lacked transparency and, as it was discovered, PayPal had done the same to people in all types of businesses – from charities to small businesses – for a variety of reasons. PayPal may have pushed the ‘gambling’ allegation on Moneymaker, but thousands of others had similar stories to tell about seized funds.

When PayPal realized that a wide range of people were upset about similar experiences, PayPal returned the $12,228.55 to Moneymaker.

“We’re all fine now, aren’t we?” »

Sorry, PayPal, but enough people have contacted Beverly Hills attorney Eric Bensamochan to sue and seek class action status. And one of the three main plaintiffs in that case was PLON founder Lena Evans. She lost nearly $27,000 from her PLON retail business when PayPal confiscated that money in May 2021.

Don’t go away easily

The first ruling in the case was released on June 2, 2022. Judge Beth Labson Freeman of the San Jose Division of the U.S. District Court for Northern California ruled in favor of PayPal. The company had required each PayPal user to sign a long and complicated user agreement when signing up for their original account. This user agreement obligated arbitration in such cases. Thus, Judge Freeman granted PayPal’s motion to compel arbitration and dismissed the case without prejudice.

Immediately, Bensamochan filed an appeal with the Ninth Circuit within just a few weeks.

In fact, they did more than that.

The plaintiffs, represented by the law firm Bensamochan in coordination with Schreiber & Schreiber, have established a new way for people around the world to join the fight. They revealed a way for people to express their desire to join the lawsuit via a blockchain token that allowed people to become a party to the filing but at no cost. The pool of plaintiffs was too big for arbitration, and their lawyers decided to show it by the number of people with complaints.

This website is no longer online, but thousands of people had already signed the petition.

Welcome to the Table, Amazon

The plaintiffs’ latest decision came this week, as law firm Bensamochan announced that it and its partner firms had launched a mass arbitration initiative against PayPal…and Amazon.

News has started to emerge in recent months that Amazon has suspended sellers’ accounts for transactions deemed suspicious or in violation of certain internal policies. It then fell to account holders to appeal the suspension, during which time their accounts and product inventory remained frozen.

According to Bensamochan, Amazon’s practice was similar to that of PayPal, which takes advantage of users by withholding their funds without due process or transparency. And small business owners working with Amazon, much like those dealing with PayPal, typically lacked the funds to take legal action to recover their seized funds.

Bensamochan noted that more than four thousand people had joined the lawsuit as of October 13. And the overall claim had already exceeded $7 million.

“Working with our partner companies,” he told us, “we uncovered similar behavior from, whereby Amazon seized funds from its sellers for alleged violations of internal customer policies. “Amazon. The Bensamochan Company and our partners take any theft of people’s hard-earned money seriously, and we will continue to lead the fight against those who believe they can operate in this way with impunity. We also want to thank Chris Moneymaker , Lena Evans and all the community members who have shown their support!

How to register

Bensamochan’s latest announcement asked victims to join mass arbitration. The Justitia Dao website details the project.

In fact, there are two ways to get involved, both the site’s projects page.

Those who are cross-border e-commerce sellers on Amazon with frozen funds can apply to be part of the lawsuit. Amazon had to reject their refund requests and liquidate their accounts. Additionally, those whose funds have been seized by PayPal can also submit a claim, but not if they are still within the 180-day waiting period.


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