Dating Website True.com Agrees to Settle Class Action

September 25, 2009

TrueBeginnings LLC, the owner and operator of the True.com online dating website, has agreed to settle a class action lawsuit that was brought against it by a former subscriber who alleged that True had unlawfully charged fees to his credit card after he cancelled his subscription. True denies all of the allegations, and has agreed to settle the case to focus on key priorities for the company, to best serve its customers, and because a successful defense of the Litigation would be expensive and distracting. On September 22, 2009, the United States District Court for the Northern District of Texas approved the settlement. Members of the settlement class have until October 21, 2009, to submit claims forms to participate in the settlement.

The lawsuit alleged, among other things, that True had a pattern and practice of imposing unauthorized charges on the credit cards or debit cards of subscribers who had previously cancelled their subscription. Discovery in the lawsuit revealed that True had in place a system -- which it called Auto-Subscription -- whereby certain former subscribers could automatically re-subscribe by clicking on certain hyper-links. The lawsuit alleged that True did not adequately inform the former subscribers of the existence of the Auto-Subscription system, or of the fact that they would be subject to re-subscription based upon clicking on those hyper-links. Among other things, True asserted this practice is convenient for its customers; the Auto-Subscription process merely initiated a new free trial, with both internet and email reminders about how and when to cancel to prevent any subscription fees.

As part of the settlement, True has agreed to pay $1.5 million into a settlement fund over a period from February 2009 through March 2010. Certain former True subscribers are eligible to make claims for refunds of either $35 (if they were charged only a single month's fees) or $50 (if they were charged two or more month's fees). In addition, a larger group of former subscribers will be offered 45 days of free subscription service on the True.com website. True also has agreed to a Court order requiring an intervening affirmative action or step to its Auto-Subscription system, to indicate that the potential subscriber assents to re-subscription.

Plaintiff is represented by Jonathan Tycko of the law firm of Tycko & Zavareei LLP, based in Washington, D.C., and Jon Sheperd of the law firm of Alston & Bird LLP, based in Dallas, Texas. About the settlement, Mr. Tycko said: "We believe this is a great result for True's former subscribers. Those former subscribers who were charged as a result of True's Auto-Subscription system can get a substantial refund, and we have put a stop to True's former practice of re-subscribing its customers via Auto-Subscription." In response, True's spokesperson said, "We want to do what is best for our current and potential subscribers, and a successful defense of this lawsuit diverts our attention from that objective. We therefore have agreed to this settlement in order to return our focus to bringing people together, even though we deny any wrongdoing."

The lawsuit is titled Thomas Wong v. TrueBeginnings, LLC d/b/a True.com, Civil Action No. 3-07CV1244-N (U.S. District Court for the Northern District of Texas). More information about the settlement is available at the website www.trueclassaction.com.

SOURCE Tycko & Zavareei LLP