Wine.com facing $1 Mil class action settlement, but impact may be less than it appears

Jul 28, 2015

(WII) - Wine.com may be on the hook for almost $1 million if a class action lawsuit settlement meets court approval at the end of next month.

However, the settlement’s fine print could offer a much softer financial landing for Wine.com than the bottom-line numbers may suggest.

As with many class-action settlements, Wine.com may actually pay more to the plaintiff’s attorneys than to its affected consumers.

Oct. 2013 complaint focuses on free shipping program

The class action lawsuit was brought in October 2013 by a San Francisco resident who claimed in his filings that the free shipping provisions of Wine.com’s premium StewardShip program were not actually free and that the company failed to properly inform him that the $49 cost would be automatically charged annually and could go up upon renewal.

Wine.com denies wrongdoing

Michael J. Osborn, Wine.com Founder & VP Merchandising said:”Wine.com vigorously contests the claims asserted in the case, including that we engaged in any wrongdoing. Nevertheless, in an effort to avoid the uncertainties of litigation, we have entered into an agreement to resolve the case through settlement.”


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