|
PureBytes Links
Trading Reference Links
|
Patrick M wrote:
>
> I was recently told by a former Signal user that there is currently a
> class action lawsuit against Signal by some former customers. Does
> anyone have information they can share?
>
> Regards
> Patrick.
The class action suit was scheduled for hearing in San Mateo on
9/5/97. I have not heard anything since that date, so am curious how it
went. Basically, there are two suits, a nationwide Complaint on behalf
of all subscribers, and a New York version, on behalf of residents of
that state. The omplaint applies to any and all Signal and QuoTrek
subscribers to *realtime* data from January 1, 1995 to the present.
Briefly, the Complaint alleges false advertising on DBC's part wrt to
*realtime* data. The operative paragraph reads as follows:
"The Complaint alleges that DBC failed to provide "real-time" quotes,
as opposed to delayed quotes. The Complaint alleges that due to
bandwidth constraints, quotes from the major securities markets were
delayed, particularly during heavy/peak periods. The Complaint alleges
that DBC's advertising constituted a deceptive act or practice in
violation of the California Consumers' Legal Remedies Act and other
state statutes prohibiting unfair and deceptive acts and practices in
consumer transactions and alleges breach of contract and fraud. The
Complaint seeks injunctive relief and damages. The New York Action
alleged similar claims and charged DBC with violation of Section 349 of
the New York General Business Law."
As could be expected, "DBC has vigorously denied all liability with
respect to the facts and claims asserted in the Complaint and the New
York Action." DBC seems to acknowledge that things might run a little
late on the 9.6Kb receivers, but "DBC provides the same or superior
real-time service as other vendors of securities market information."
DBC has offered to settle the Action by upgrading any subscriber's old
equipment to any of DBC's several more modern data receipt options, if
the subscriber contracts for a year's worth of data, with the first
month's fees discounted by 50%. (Contrary to precedent, no discounts
for payment-in-advance for the year's data were offered). Such
subscribers also shall have access to a 1-800 number "which can be used
by subscribers to the Signal or QuoTrek services who wish to report
accuracy or delay related problems to DBC."
It will be interesting to note the significance attached by the Court
to the importance of truly realtime data delivery as agreed to in these
types of contracts.
Dick Crotinger
|