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A Peek Inside the SnapNames Lawsuit

Lawyer filed claim on behalf of brother.

Earlier today I talked to Santiago A. Cueto, the first lawyer to file a lawsuit against SnapNames for the insider bidding scandal.

He was quick to the docket because lead plaintiff Carlos A. Cueto is his brother. While other firms were trying to find a lead plaintiff, Santiago’s brother was emailing him the details.

This is an interesting case because SnapNames has already admitted wrong doing and offered to compensate victims.

“That’s not going to cut it,” said S. Cueto. “We want to clean up the industry.”

Both brothers think insider bidding is pervasive in the industry, and they may expand their investigation to other companies as well.

The lawsuit was filed in the Cuetos’ home state of Florida, which Santiago notes has strong consumer protection laws. The lawsuit, available for viewing here (pdf), charges SnapNames with violating the Florida Deceptive and Unfair Trade Practices Act and and Unjust Enrichment. The lawsuit requests damages but does not name an amount.

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  1. Howard says

    The Plaintiff has a long road ahead. First, the class must be certified by the court and more importantly, the suit is subject to being removed to Federal Court on a diversity of citizenship ground.

  2. Matt says

    Why did the lawyer cross the road?
    Because there was a car accident on the other side.

    What’s wrong with lawyer jokes?
    Lawyers don’t think their funny.
    People don’t think they’re jokes.

  3. Marg says

    Thanks “lackluster” for the link to Frank Schilling’s Seven Mile blog post about how great and honest he thought Snapnames was (March 2007). I remember reading it at the time.

    That post would have been written at the height of the Halvarez bidding on Snapnames and Frank with his millions a year (his estimate) spent at Snapnames must have been very affected by this. Financial rebates aside, I wonder how betrayed he feels now? I would feel kicked in the gut if I was him….

  4. Paul Keating says

    I wonder if the action will survive a challenge to jurisdiction. While an Illinios case, the recent GoDaddy victory on jurisdiction grounds is educational.

    Also, all bidders at Snap agreed to their TOS which included limitations on liability and a jurisdictional provision. Of course one may try to escape from the TOS by alleging fraud but success is not a certainty.

    While I also have concerns about the whole drop.auction process, unless someone can show me that Snap actually knew or suspected the problem, the litigation has the potential for causing more problems for the industry then good.

  5. lackluster says

    Here is the comment from Adam Strong and the answer by Frank. LOL.

    Posted by Adam Strong | March 11th, 2007 at 12:39 am
    Frank, one other reason for using snap. Great people. The people you work with in any business make life easier and snap has at some of the best.

    ***FS*** True that! Except for that Nelson *jk* Snapnames wouldn’t be the same without Nelson Brady.

  6. bubbles says

    “clean up the industry?” This is an isolated case in one company. To somehow indict an entire industry based on this event is ridiculous. Perhaps he could clean up the oil industry or managed health care.

    Michael Arrington’s statements are also funny to me.
    He is a joke.
    He got sacked at Pool.
    He is a windbag which makes blogging a perfect forum for him: no responsibility to being a professional windbag (windblogger? hotwindblogger?).
    The fact that anyone hired him should be a lesson to anyone down on their luck.
    Talk about doing more with less.
    Way to go.

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