LinkedIn has recently routed a lengthy email to its users to make them aware a class-action lawsuit was filed against it. The company has decided to fork out $13 million to settle the lawsuit.
The company emailed its members who may have used the Add Connections functionality of the social network from Sept. 17, 2011 to Oct. 31, 2014, discussing a class-action legal settlement.
The 2013 lawsuit accused that LinkedIn accessed members' email accounts with no permission and used their names in reminder emails LinkedIn sent out to individuals in the member's address books.
During the time, the company denied the accusations.
"Based on its review of LinkedIn's product, the court agreed that these allegations were false and found that LinkedIn's members gave permission to share their email contacts with LinkedIn and to send invitations to connect on LinkedIn," the company said.
The court, however, discovered that no consent was given by the members to LinkedIn regarding the two reminder emails it would send out concerning the requests.
While the company still denies allegations, it has carried out modifications to its product as well as privacy policy. It has also opted to pay $13 million to members of the settlement class who file approved claims.
Members will soon notice a new disclosure when sending a connection invitation, notifying them that it will send out two reminder emails. Additionally, the company will implement a new feature by late 2015 which will allow members to stop reminders from being sent by cancelling the connection invite.
The settlement money will be dispersed on a pro rata basis, according to LinkedIn's email. This means the total amount a person may get depends on how many individuals file claims.
However, should the payout be lower than $10 per person who filed, the company will need to add an extra $750,000, it notes.
The company also settled another lawsuit earlier this year. It reportedly spent $1.25 million on a lawsuit accusing that LinkedIn of having failed to safeguard its paying users' passwords and personal information.
It was reported back in 2012 that online hackers stole and published 6.5 million passwords of some LinkedIn members on a Russian hacker site.
