Santa Clara, CA: GoDaddy is facing a consumer fraud class action lawsuit over allegations it misrepresents one of its hosting plans. The lawsuit was filed by two men in California, alleging fraudulent concealment, negligent misrepresentation, and violations of the Arizona Consumer Fraud Act, the California False Advertising Law, and the California Unfair Competition Law.
Specifically, the web hosting and services company, according to the proposed lawsuit, sells differing types of server access, including "virtual private servers" and "dedicated servers." The dedicated GoDaddy server is assigned to one customer, and the resources of that server are not shared or used by any other customer. However, plaintiffs Mark Schellenbach and William Ryder claim that GoDaddy' virtual private server in fact allows several separate servers to run on and share the resources of one physical server. While the GoDaddy prices its dedicated servers substantially higher than its virtual private servers, the company misrepresents its dedicated servers.
According to the complaint, GoDaddy provides its dedicated server to customers with virtual private servers that may share the resources of a single physical server between multiple users. The plaintiffs allege that in reality, this means that customers who purchase a dedicated server subscription are paying a premium for the lesser virtual private server.
The plaintiffs are represented by attorneys Kathryn Honecker of Rose Law Group in Scottsdale, Arizona, Stephen R. Basser and Samuel M. Ward of Barrack Rodos & Bacine in San Diego, John G. Emerson and David G. Scott of Emerson Scott in Houston and Little Rock, Arkansas, and Christopher D. Jennings of Johnson Vines in Little Rock.
The case is US District Court for the District of Arizona Case number 2:16-CV-00746-DGC.