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REGISTERFLY CLASS ACTION INVESTIGATION On March 20, 2007, ICANN gave notice to terminate RegisterFly.com's right to handle domain transfers. The internet-oversight organization has given RegisterFly 15 days notice to cease operating as an ICANN-accredited registrar. When the notice period expires on March 31, ICANN can approved the bulk transfer of domains to another ICANN registrar but in the meantime it says RegisterFly is required to provide "all necessary authorization and information to allow domain name transfers to occur. Any and all registrants wishing to transfer away from RegisterFly during this period should be allowed to do so efficiently and expeditiously."
The problem for 75,000 RegisterFly customers, including the Easter Seals Society, the government of Thailand and Michael Jackson, is that they cannot transfer their accounts to another registrar without authorization codes from RegisterFly which the company has allegedly been unable to deliver.
Dr Paul Twomey, president and CEO of ICANN, said: "Terminating accreditation is the strongest measure ICANN is able to take against RegisterFly under its powers. ICANN has been frustrated and distressed by recent management confusion inside RegisterFly.”
The company's specific breaches of contract, according to ICANN, include failing to provide ICANN with records of who owns accounts, failing to provide proof that it is paying the domain name registry operators for its customers' names and replacing customers' names with Medina's name.
New Jersey-based RegisterFly controls around two million domain names for 900,000 different owners. The company has been in meltdown for many weeks, following a vicious dispute fought through the courts between its two owners, Kevin Medina and John Narusewicz.
Medina had been CEO of Registerfly parent company Unifiednames before being fired by other board members February 12 among long term allegations of poor service, and more recent claims of claims of more serious breaches in service.
Over the last few weeks, Registerfly's service had been interrupted repeatedly, and domain names registered by customers were reportedly lost, as the companies principles struggled for control of the business. John Naruszewicz, who co-founded the company and succeeded Medina as CEO, accused Medina of stealing money from the company. Medina denied the charges and accused Naruszewicz of using fraud to assume control of the company.
In a recent judgment from a lawsuit between the parties, a judge declared stock certificates held by Naruszewicz to be null and void, and ruled that Medina owned the company. According to press reports, Naruszewicz reportedly does not plan to appeal the decision. He allegedly says he expects the company to implode within a few days.
The Internet Corporation for Assigned Names and Numbers has reportedly taken steps to stop domain names registered by Registerfly customers from being lost. The group has asked several of the registrars controlling the majority of domain names to help ensure that the expiring domains remain with their registered owners.
Attorney Peter Lagorio in conjunction with Counselseek, Inc., is currently investigating Registerly for a potential class action. Consumers and business injured by the actions of RegisterFly can contact Attorney Lagorio by using the form below.
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