So I took to contacting Paypal, and it appears that it is in fact correct.
I'll paste how they replied below. Anyone feeling Erin Brokovichy?

Regards,
Ryan

---
Dear Ryan Lee,

Thank you for contacting PayPal.

Thank you for bringing the !'Notice of Pendency of Class Action and

Proposed Settlement!( email to our attention. We can confirm that PayPal

sent this email. We apologize for any confusion this may have caused.

On June 11th, 2004 PayPal entered into a Settlement Agreement with Girard

Gibbs & De Bartolomeo LLP and Wolf Popper LLP for a lawsuit filed in 2002

on behalf of a class alleging that PayPal did not appropriately communicate

about customer transactions and did not appropriately process limits that

were placed on some customer accounts. In this agreement, PayPal does not

acknowledge that any of the allegations in the case are true and entered

into the Settlement Agreement to avoid further costs of litigation, and to

devote resources to more productive areas of our business

PayPal's employees and subsidiaries can not provide information or legal

advice in relation to the class action lawsuit and proposed settlement. You

may seek additional information about the settlement from the attorneys for

the class. They can be reached via email or by first class mail at:

[EMAIL PROTECTED]

Girard Gibbs & De Bartolomeo LLP

601 California Street, Suite 1400

San Francisco, California 94108

Wolf Popper LLP

845 Third Avenue

New York, NY 10022

Additionally, you can obtain more information at

http://www.settlement4onlinepayments.com.


If you have any further questions regarding your account, please log in to

your PayPal account and click on Help (located on the upper right side) -3

Contact Us -3 Help by Email -3 Contact Customer Service.


Sincerely,

PayPal Account Review Department

PayPal

----- Original Message ----- 
From: "Cotty" <[EMAIL PROTECTED]>
To: "pentax list" <[EMAIL PROTECTED]>; "John Mustarde"
<[EMAIL PROTECTED]>
Sent: Wednesday, July 28, 2004 5:44 PM
Subject: Re: Paypal Class Action


> On 28/7/04, Ryan Lee, discombobulated, offered:
>
> >Hmm, maybe it's not a hoax..
> >https://www.paypal.com/settlement/
> >
> >Ryan
>
> John Mustarde, have you seen this?
>
> <http://www.settlement4onlinepayments.com/question1.php3>
>
>
>
>
> Cheers,
>   Cotty
>
>
> ___/\__
> ||   (O)   |     People, Places, Pastiche
> ||=====|    www.macads.co.uk/snaps
> _____________________________
>
>
>


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