Defendants file motion to dismiss lawsuit over bidding scandal.
Oversee.net and SnapNames have filed a motion to dismiss a lawsuit filed against it in wake of the SnapNames insider bidding scandal.
The lawsuit seeking class action status was filed by Stewart Resmer, who overpaid for a SnapNames auction by $20 in 2006 due to the insider bidding.
In its motion to dismiss (pdf), Oversee.net and SnapNames argue:
-Resmer doesn’t have any standing to name Oversee.net on any claims because Oversee.net did not acquire SnapNames until after auction in which Resmer participated.
-Plaintiff fails to state a claim under the California Auction Act because the act refers to in-person auctions, not online auctions. Oversee points to a case against eBay in which a court dismissed the case.
-There was no fiduciary duty between Oversee/SnapNames and the Resmer
-There’s no claim of fraudulent concealment because there was no fiduciary responsibility, and therefore no duty to disclose
-The defendants didn’t violate the California Business & Professions Code because, in order to violate this, the defendants would have had to violate the California Auction Act or commit statutory fraudulent concealment, which it argues it did not.
The motion to dismiss asks for a hearing date of March 15, 2010.
Louise says
Thanx for summary. Points 1 & 2 seem valid. The last two points put Oversee/Sanp on thin ice, because fraud was actually commit, from a layperson’s perspective (mine).
But to sue over $20.00 seems frivolous.
Josh says
The last 2 make it look like they want a free pass as they had no fiduciary responsibility and furthermore could not be respondsible because it was online.
In my opinion it makes them look very bad as they are basically stating on a technicality we get to screw you and btw we just dont think we owed you any fair practice.
IF this gets dismissed the shit will hit the fan.
TiredofOverseeGames says
Snap owes me xx,xxx and Nelson was bidding against me after Oversee bought Snap. However, I have not received my check yet, even though all the paper work has been sent in. If I don’t get my check soon I will be contacting one of these class action lawyers.
jp says
I thought if you buy a company you also buy it’s civil liabilities. You are only immune from criminal. I know people who have bought a company and been sued for pre opus owners actions and lost. maybe they had a bad lawyer
Andrew Allemann says
@ jp – not sure about the nuances of Oversee’s response, but I do think they could have found a better class member with more at stake.
jeff says
Well Snap was bought by Oversee after the said auction……
This was done by a direct employee of snap….. The employee was the one who founded the company. The whole deal was a wreck.
Josh says
What would be VERY ironic is OS suing over the deal and looking for monetary settlement/decision themselves. On one hand screw you the customers and on the other…
kettle meet pot.
Again all IF stuff.
D says
I already got my 25K as credit on Snap and already spent it. It was a good deal.
Tan Tran says
This may sound ridiculous but having someone sue for $20? Could this person actually be a ‘friend’ of snap and just making it easier for snap to get the case dismissed so that there is precedence against any other larger pending cases?
jeff says
how much damage can he collect… there will be plenty of other parties that have much more vested in this screw up…
Andrew Allemann says
I can assure you this guy is not a friend of snap. If you are the lead plaintiff on a class action, you can a bigger cut of the settlement.
chandan says
appears more as PR stunt
stewart says
I have read this article and your comments, we shall all see what the court has to say very soon, beware the Ides of March.
stewart says
dont suppose any of you might know who may have hacked in to my face book page do you….hmmmmm?
stewart says
ah yes comes now the report from friends thay have been hit too? well I suppose I have touched a nerve with some one huh?
Andrew Allemann says
Stewart, don’t think you’re special for having your Facebook account hacked. It’s happening to a lot of people.
stewart says
yeah guess yer right…..I aint skert of no vp of engineering no ways!
course as we used to say in the nam? there aint no such thing as a coincidnce?
guess ya had to be there huh?
All respect to this new generation of young American men and women who are serving at the edge of freedoms shining at this very hour, GOD bless and keep them each and every one.
Just a dude says
this whole business is disgusting