The Executive Suite: LinkedIn Reaches Settlement in One Court Case

Friday, September 18, 2015

LinkedIn Reaches Settlement in One Court Case

Image courtesy of (Kittisak) / FreeDigitalPhotos.net

LinkedIn is handing over $1.25 million to some users but it’s not because of any contest or prize.

The cash is being doled out after the social network agreed to pay up to users whose passwords were hacked and then posted online. The lawyers representing those users whose passwords were targeted and later posted argued LinkedIn was to blame for not ensuring the information was encrypted.
Consumer Affairs reports the $1.25 million will be split up among 800,000 users.

While that case has been settled, there’s another legal battle involving LinkedIn that is expected to reach a finale soon. That case involves instances where users complained LinkedIn used their e-mail addresses to carpet bomb their contacts with spam e-mails. The users argue LinkedIn did not ask their permission to access their contacts and then use that information.

Users claimed, Courthouse News reports, LinkedIn downloaded the e-mail addresses despite promises “[w]e will not e-mail anyone without your permission.”

The e-mails sent to those in users’ contact lists were ones endorsing LinkedIn’s products and services to potential new users. There were also follow-up e-mails sent.

A proposed settlement in the case has been granted preliminary approval with February 2016 set as the month when an agreed settlement is expected to be presented.