LinkedIn agreed to pay $13 million to settle a lawsuit (Perkins v. LinkedIn Corporation) that concerned email invitations it sent out to its members' contact lists. LinkedIn was not in the wrong when it sent the initial invitations to join LinkedIn -- LinkedIn members consented to the company sending those initial emails to people on their contact lists. The problem was in the follow-ups, sent after no response was made by invitees.
"The Court found that members consented to importing their contacts and sending the connection invitation," LinkedIn writes, "but did not find that members consented to LinkedIn sending the two reminder emails." The people who received the invitations won't be compensated. Compensation will be distributed to approved claims by LinkedIn members joining the Settlement Class whose contacts were sent multiple invitations (the "reminder emails"). Payment will be "calculated on a pro rata basis, which means that it will depend on the total number of approved claims. If the number of approved claims results in a payment amount of less than $10, LinkedIn will pay an additional amount up to $750,000 into the fund."
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