Lawsuit over employee bidding scandal voluntarily dismissed by plaintiff.
A lawsuit against SnapNames and parent company Oversee.net that was requesting class action status has been voluntarily dismissed.
Steward Resmer, a SnapNames customer who lost $20 in an auction thanks to the “halvarez scandal”, filed the lawsuit in U.S. District Court, Central District of California in November. Resmer was seeking class action status for the case on behalf of U.S. customers who had lost money due to inflated bidding. He was asking for Snapames to “Disgorge Defendants of all revenue earned from SnapNames.com Internet domain name auctions during the Class period”.
The lawsuit hit a major roadblock when the judge questioned the dollar amount in question in the suit. In order to be certified as a class action, at least $5 million in damages must have occurred. As it turned out, U.S. customers lost less than $1 million in direct over bids thanks to the employee bidding.
Resmer dismissed the case without prejudice, meaning it can be refiled at a later date. A copy of the dismissal is here.