Lawsuit claims violation of California law and fraud.
Another lawsuit seeking class action status has been filed against Oversee.net over the SnapNames insider bidding scandal.
Law firm KamberEdelson LLC filed the case on behalf of its lead plaintiff, Stewart Resmer, in U.S. District Court Central District of California on November 18. Resmer, like Oversee.net, is located in Los Angeles.
Among other evidence, the lawsuit cites a now famous January 6, 2008 DNForum posting by a SnapNames employee that denied that bidder halvarez was associated with SnapNames.
It draws a parallel of SnapNames’ actions to a bank bidding on its own properties in a foreclosure auction”
halvarez bid in approximately 50,000 auctions or more from 2005 through 2009, thereby artificially raising the sale prices in these auctions and causing the bidders to spend thousands, if not millions of extra dollars. This is analogous to the bank that owns foreclosed homes secretly bidding in its own auctions to artificially increase the final amount paid by the winning bidder.
The complaint alleges Oversee committed a number of violations:
-Violation of California Auction Law
-Violations of Cal. Civ. Code 1572, 1573, 1709, & 1710 (having to do with deceit and fraud)
-Violation of Cal. Bus. & Prof. Code 17200 (California’s Unfair Competition Law)
-Breach of Fiduciary Duty
In addition to payment for direct damages and legal fees, the suit seeks to “Disgorge Defendants of all revenue earned from SnapNames.com Internet domain name auctions during the Class period”.
A previous lawsuit was filed by another firm in a Florida circuit court.
A copy of the lawsuit is available here.