A San Francisco-based law firm filed a federal class-action lawsuit this week against PayPal on behalf of the service's customers. The suit, filed in the U.S. District Court for the Northern District of California, charges PayPal violated the Electronic Funds Transfer Act and unlawfully restricted customers' access to their accounts. Girard, Gibbs & De Bartolomeo, which represents the PayPal customers, is asking for actual damages and restitution, but has not asked for a specific amount.
Last month, a separate class-action suit wasagainst PayPal in California Superior Court in Santa Clara County. Similar to this week's suit, that case charged PayPal illegitimately froze customers' accounts. PayPal was also hit with a patent-infringement suit last month that forced it to its initial public . All three suits are "without merit," PayPal executives said.