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PayPal customers sue in federal court

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 was filed against 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 delay its initial public offering. All three suits are "without merit," PayPal executives said.

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 was filed against 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 delay its initial public offering. All three suits are "without merit," PayPal executives said.