Fraley v. Facebook, Inc.

[3] The order denied all significant aspects of Facebook's motion, thereby allowing Plaintiffs to continue the case towards class certification.

[3] In May 2012, one week before the hearing on the motion for class certification, and just after Facebook began selling stock to the public, the parties reached an initial settlement.

[8] The parties revised the settlement, addressing the Judge's primary concerns regarding how the settlement amount was determined, removing the "clear sailing" agreement provision such that Facebook could now oppose Plaintiff attorneys' fee request, and, significantly, included clearer language regarding the ability of minors, as well as their parents, to prevent minors from appearing in advertisements.

[9] Facebook agreed to a deal in which they would:[9] On December 3, 2012, Judge Richard Seeborg preliminarily approved the Amended Settlement Agreement submitted by the parties.

If too many people file claims and the amount per person is significantly diminished, the settlement proposes to divide the Settlement Fund, less other deductions, among named non-profits which ostensibly are involved with, and will use the money for, the public good regarding social media education and outreach as it relates to advertising, minors, and privacy, in accordance with the cy pres doctrine of the American legal system.