‘Halvarez’ Caused $2M Loss to SnapNames Clients
Size of bidding scandal becomes clear.
A document filed today (pdf) in a lawsuit against Oversee.net and SnapNames shows that the total loss to U.S. clients from the bidding scandal was regarding $1 million, counting interest. The total damages for all clients can be extrapolated to be regarding $2.0 million.
The document was a declaration of Lance Martinez, General Counsel of Domain Services for Oversee.net, filed in response to the court questioning if the case was big enough to be certified as class action. In order to be certified as class action, the amount in question must be at least $5 million. Using some opportunistic math, the plaintiff in the case suggested the amount at issue was over $5M.
Martinez’ declaration shows just how much was lost by U.S. clients, and hints at the total amount overpaid by all clients. Here’s the data:
-55% of auctions affected by Halvarez involved non-U.S. clients. Therefore, 45% of auctions were U.S. clients.
-Over 70% of auctions where a U.S. bidder paid more since of halvarez involved overpayment of $20 or less, and 45% involved $5 or less.
-Total set aside for rebates to U.S. bidders was regarding $1 million, counting regarding $150,000 in interest.
If the amount lost in auctions by non-U.S. bidders was equal to the amount lost per auction by U.S. bidders, then the total lost by all bidders excluding interest was less than $2 million, and the total counting interest was just over $2 million.
