I just received two emails from Snapnames with information about the rebate offer (both emails look the same). The email from the company confirms the bidder ID as “halvarez,” which has been widely reported already. It also informs users that audits were performed on all closed auctions by FTI Consulting, a third-party forensic accounting firm. The rebate offer is described in full detail in the email, and customers were notified what auctions were affected and how much their rebate will be.
If you were involved in a one on one auction with “halvarez” and won, the rebate is the difference between what you paid and the opening bid, plus interest. If you bid in an auction with “halvarez” and others, the rebate will be the sales price minus what the next high bid would have been without the involvement of “halvarez” plus interest.
One issue I see with the rebate offer is related to the perceived value of the domain name in auction. On a personal level, I feel more comfortable bidding on a domain auction where there is more than one person bidding against me. It reassures me that the domain name has more interest than me and another bidder. Having read that “halvarez” was a big bidder in the past, I may have been more confident in my bidding if he and another bidder were involved.
Another large issue I see is that this rebate offer does not take into consideration domain auctions where the bidder lost to halvarez. Had halvarez not participated in the auction, there is the potential that domain auctions would have been won by another bidder at a lower price. I don’t know how or if Oversee will address these issues. Maybe there was another email sent to people who lost auctions to halvarez.
Finally, Snapnames requires you to return the acceptance form to Rust Consulting (who according to their website is the leader in “Class Action Settlement Administration”), as they are the third party administrator for these rebates. If you do accept the offer, you will need to waive “any claims you may have against SnapNames and its affiliates relating to this matter.”
I have never been a big Snapnames bidder, so most of this doesn’t really apply to me, but they’re a few things to consider. As with any document of a legal nature, you should consult with an attorney and/or accountant to review your options.
“Another large issue I see is that this rebate offer does not take into consideration domain auctions where the bidder lost to halvarez. Had halvarez not participated in the auction, there is the potential that domain auctions would have been won by another bidder at a lower price.”
With some being the only other bidder with “halvarez” and losing would make this easier but if the domain is no longer in “his” account, it would be near impossible to “make it right.” If several bidders were in the auction, there are a lot of “if’s” and again near impossible to make everybody happy.
It will be interesting to hear how many people accept the rebate offer or if people will wait to see if a class action is filed. Is there a deadline to accept?
The email says, “This offer is open for twelve months from today’s date.”
Let the lawsuits begin
I think it would be wise to wait at least a couple months before accepting the rebate and see how things pan out if you have 12 months!
Thanks for the info Elliot.
Some of Halvarez’s competing bidders emails might have bounced. Is Snapnames going to try to contact them via phone, snail mail etc? Some of the bidders might even have left domaining altogether, what about their rebate?
The issue of accepting the rebate or not definitely needs to be discussed with peers, attorney and accountant.
or you can always do what I have done, and that is file a consumer complaint with the Oregon Attorney General ?
Seems like the correct thing to do, Oversee is trying to get out front to get as many sign offs as they can befre the law catches up with them…slick is as slick does I guess huh?
the individual I spoke with there advises the complaints are pouring in.
1. If it was just me and halvarez in the auction. I want the domain.
Can the domain be considered “stolen property”? Nelson Brady should be forced to give all his domains back to snap for disbursement.
I understand the investigation is still ongoing. Maybe that’s why they are offering a credit as an option? Maybe you’ll be able to buy the Halvarez domains for $59 or $69 each if it was just you and him in the auction?
2. One reason to take the money now… if Oversee declares bankruptcy all debts would be wiped out.
3. I would like to see something from Oversee assuring all of us that they are financially capable of making all these payments and reassure us that Snap, Moniker and Domain Sponsor are all sound, viable entities.
Will Oversee close Snap? Will they sell it? Are the drop catching registrars committed to stay with Snapnames? You can bet NameJet is working the phones.