San Diego
– Online social network has agreed to pay nearly $10 million to
settle a class action lawsuit over claims of false advertising related to its
upgrade pitch to users.

Anthony Michaels claimed in the suit that, when he paid
$15 to upgrade to a Gold Membership and find out which former classmates had
"tried to contact him" — as the Classmates ad in question stated —
"no former classmate of his had tried to contact him or view his

While denying any wrongdoing, agreed to pay up to
$9.5 million to the more than 3 million Classmates members who upgraded after
seeing the marketing pitch, in the form of $3 in cash each or a $2 discount on

The company also agreed to changed the way it describes its
Guestbook feature, to indicate that people viewing a user’s profile on
Classmates are not necessarily former classmates.


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(DMW previous coverage)