Posted 9:37 AM
All refund checks have been mailed to class members. Class members who are U.S. residents should have received their checks by now; checks addressed to residents of other countries may take longer. If you expected a refund check, did not receive a check or letter, and have not already notified us of that fact, please e-mail us and we will do our best to assist you.

Barring any unforeseen development, we anticipate no need for further updates on this site. We appreciate your support and patience throughout the prosecution and administration of the class action, as well as the expressions of gratitude we have received. We hope you found the result to be satisfactory.

Posted 1:05 PM
A Word About the Processing of Refund Checks

For each allowed claim, the information on the claim form was used to match the claim to one or more specific e-gold accounts from which one or more uncompensated spends were made to CostaGold, according to the account records of e-gold Ltd.

In each case, the claim belongs and the refund check will be made payable to the owner(s) of the relevant e-gold account. The owner(s) of the account are deemed to be the person(s) who made the spend--that is, the Class Member(s). Class Counsel cannot and will not honor requests--whether by phone, e-mail, fax or letter--to change any name on a check. No such request will be honored even if the Class Member has died, become incompetent, or disappeared.

In each case the refund check will be sent to the address indicated on the claim form. Class Counsel cannot and will not honor requests--whether by phone, e-mail, fax or letter--to send any check to a different address. No such request will be honored even if the Class Member has moved since the claim form was submitted.

It is the responsibility of each Class Member or his or her legal representative to obtain the legal authority to negotiate refund checks, and to have on file with the postal service the necessary change-of-address or forwarding orders.

Class Counsel will report to law enforcement authorities any evidence of attempted theft from a Class Member.

THERE WILL BE NO EXCEPTIONS TO THIS POLICY. Thank you for your understanding.

Posted 1:39 PM
We are pleased to report that on January 24, 2005, the Court granted Class Counsel's motions for final approval of the Settlement Agreement and to allow claims in the CostaGold Class Action. Each Class Member who submitted an allowed claim will receive a check for 100% of each investment in ("spend" to) CostaGold for which he or she received no return, according to the account records provided by e-gold Ltd. The amount of each claim payment was determined as described in part 5 of the Notice of Class Action and Hearing on Proposed Settlement that was sent to each Class Member and previously posted on this website. Court ordered payments determined in this fashion may be more or less than the amount claimed by a class member.

Class Counsel will begin to mail checks to Class Members in approximately two weeks. Please note that the Class Member is the person who is listed in e-gold Ltd.'s records as the owner of the account from which an uncompensated spend was made. Checks will be made payable to these Class Members only.

Posted 11:00 AM
The Court has approved the following Notice of Class Action and Hearing on Proposed Settlement dated September 9, 2004. The Notice contains important information for anyone who invested money, in the form of e-gold, with CostaGold and who did not receive CostaGold's promised return, or any return, on the investment. The last page of the Notice is a Claim Form. The Claim Form is also included as a separate document.

Posted 7:42 AM
Class Counsel have received records from OmniPay and e-gold Ltd. pursuant to the settlement agreement. Class Counsel have also prepared a detailed Notice of Class Action and Hearing on Proposed Settlement, which is awaiting court approval. Once the court approves the notice, it will be posted on this website and distributed to class members, along with a claim form that class members can use to submit their claims. Court approval of the notice is expected in the month of August.

Posted 8:23 AM
On June 9, 2004, the Court granted preliminary approval to the settlement agreement between the class representatives and Gold & Silver Reserve, Inc. d/b/a OmniPay. Class counsel expect to receive records from OmniPay and e-gold Ltd., identifying class members by name and last-known e-mail and street addresses, by June 30, 2004. At that point, class counsel will distribute notice of the class action and proposed settlement to the members of the class.

Posted 7:04 AM
The class representatives have reached a settlement with Gold & Silver Reserve, Inc. d/b/a OmniPay. The settlement agreement is subject to preliminary and final approval by the Court. A hearing on the request for preliminary approval is scheduled for June 9, 2004. If the Court approves the settlement agreement on a preliminary basis, a notice containing the essential terms of the agreement will be distributed to class members using e-gold's account records. Class members will have the opportunity to object to the settlement and to either opt out of the settlement or to submit their claims. After the time for filing objections and claims has expired, the Court will hold a Fairness Hearing, decide on final approval of the settlement, resolve any disputed claims, and authorize disbursement of the proceeds.

Posted 9:34 AM
On February 16, 2004, the Wisconsin Court of Appeals issued a decision denying the motion of Gold & Silver Reserve, Inc. d/b/a OmniPay ("Omnipay"), for relief pending appeal. The decision would have allowed the plaintiff class to take action to enforce its judgment against OmniPay while the appeal is pending.

However, following the decision of the Court of Appeals, the parties engaged in a productive mediation session. We are pleased to report that a tentative settlement of the class action has been reached with OmniPay. The proposed settlement is subject to notification of class members and court approval. The settlement, if approved, will create a fund to reimburse class members for losses incurred in dealing with CostaGold. The fund may or may not be sufficient to fully reimburse each class member. The amount that each class member will receive under the settlement, if approved, will depend on the aggregate dollar amount of verifiable claims received. The proposed settlement calls for production of e-gold Ltd.'s records of spends to and payments from CostaGold's accounts, and claims will be compared to those records for verification purposes.

Once the tentative settlement is reduced to a written agreement, we will file a motion asking the court to approve it. If the court approves the settlement provisionally, class members will receive an official settlement notification describing the settlement terms in detail, a claim form and instructions within the next several months. In order to substantiate their claims, it is important for class members to preserve any records they have of spends to and payments from CostaGold.

Posted 1:51 PM
On December 23, 2003, the Wisconsin Court of Appeals granted the emergency motion of Gold & Silver Reserve, Inc. (OmniPay) for a temporary stay of execution of the plaintiff class' judgment. This order effectively postponed, pending further order by the court of appeals, the date for OmniPay to comply with the trial court's order that it deposit the amount of the judgment in U.S. dollars with the clerk's office. The court of appeals ordered OmniPay to file the trial transcript, and both parties to file further briefs on the issue of a stay pending appeal, by January 16, 2004.

The entire appeal process may be expected to take about a year, and longer if a petition to the Wisconsin Supreme Court follows the final decision of the court of appeals. However, it is reasonable to expect the motion for stay pending appeal to be decided within several weeks after January 16, 2004.

We will update this site with further information when the court of appeals rules on that motion, or if there are any other significant developments.

Posted 9:25 AM
Following trial in the garnishment action against Gold & Silver Reserve, Inc., the garnishee, the Court issued the following Findings of Fact, Conclusions of Law, Order for Judgment and Judgment, dated December 19. 2003.

Posted 7:16 AM
A two-day trial between the class of CostaGold customers and Gold & Silver Reserve, Inc. (OmniPay), concluded on December 11, 2003. At the conclusion of the trial, the Court granted judgment in favor of the plaintiff class, and ordered that OmniPay pay into Court the value of 4,066.46 ounces of e-gold, in U.S. dollars, within two weeks. OmniPay has stated its intention to appeal.

It is important to understand that no funds have been recovered at this point. However, the Court's ruling is certainly a step in the right direction.

We will post a copy of the Court's order on this site as soon as it is available, and will keep you informed of other significant developments.

Posted 1:28 PM
The garnishment action brought by the class against Gold & Silver Reserve, Inc. (OmniPay) came before the Court on July 30, 2003 for a motion hearing. In the action, the class contends that CostaGold owned the funds that OmniPay received in connection with the eleven exchange orders entered on January 19, 2001. OmniPay now disputes that contention. The Court ruled that a genuine dispute of material fact exists, requiring a trial. The Court scheduled a trial on that issue for December 10, 2003.

Posted 2:39 PM
A mediation session took place as scheduled on July 22, 2003. However, no settlement resulted. The court hearing is expected to proceed as scheduled on July 30, 2003.

Posted 12:57 PM
As described in more detail in the post of March 12, 2003 (see below), this matter involves two legal actions--the case against defendant CostaGold.com, and a separate garnishment action against Gold & Silver Reserve, Inc. (OmniPay) to recover the "costagold escrow account." In the case against CostaGold.com, as previously reported, a class has been certified and judgment has been entered in favor of the class

In the garnishment action, the plaintiffs, on behalf of the certified class of CostaGold customers, have filed a motion for summary judgment--that is, judgment without a trial. OmniPay has also filed a motion for summary judgment. A court hearing on these motions is scheduled on July 30, 2003 at 10:00 a.m. The possible results are: (1) judgment in favor of the class, (2) judgment in favor of OmniPay, or (3) denial of both motions and setting the case for trial. We may receive an oral decision on the hearing date, or the Court may take the motions under advisement and issue a decision later.

A mediation in the garnishment action is scheduled on July 22, 2003 at 9:00 a.m. A court-appointed mediator will preside. The mediator does not decide the case, but instead attempts to facilitate a settlement. The mediation is non-binding--that is, neither party is required to settle. In some cases more than one mediation session is necessary. If mediation produces a settlement before July 30, then the court hearing scheduled for that date will be unnecessary.

Posted 7:08 PM
There are no substantive developments to report at this time. As of now, Croen & Barr LLP, class counsel, plans to file a motion for summary judgment against Omnipay, the defendant in the garnishment action. Summary judgment is appropriate when there are no material issues of fact in dispute and the moving party is entitled to judgment as a matter of law. A decision could be rendered on the motion for summary judgment within 60-90 days after the motion is filed. However, the timing of the decision and the decision itself are entirely within the discretion of the court. We will update this information when the motion papers are completed and filed or if other significant developments occur.

Posted 1:19 PM
Here is a notice to class members authorized by court order on March 11, 2003:

IMPORTANT LEGAL NOTICE TO ALL PERSONS WHO INVESTED MONEY WITH DEFENDANT COSTAGOLD.COM AND WHO DID NOT RECEIVE COSTAGOLD'S PROMISED RETURN, OR ANY RETURN, ON THE INVESTMENT

STATE OF WISCONSIN CIRCUIT COURT MILWAUKEE COUNTY
Civil Division--Branch 36

SHERRY K. PAPPAS,
DIANNE P. LONG, and
SHARON MYERS,
on their own behalf and on behalf of all
others similarly situated,

Plaintiffs,
Case No. 02CV008550
vs.

COSTAGOLD.COM,
a foreign business entity,

Defendant.


NOTICE OF CLASS ACTION


THIS NOTICE HAS BEEN SENT TO YOU BY ORDER OF THE COURT. PLEASE READ IT CAREFULLY. IT DISCUSSES A LAWSUIT AND RELATED PROCEEDINGS THAT MAY AFFECT YOUR RIGHTS AND INTERESTS.

1. WHY SHOULD I READ THIS NOTICE?

The purpose of this notice is to inform you of a class action lawsuit now pending before the Honorable Jeffrey A. Kremers, Circuit Judge, Branch 36, in the Milwaukee County (Wisconsin) Circuit Court, on behalf of all persons who invested money, in the form of e-gold, with defendant CostaGold.com ("CostaGold") and who did not receive CostaGold's promised return, or any return, on the investment. Your rights may be affected by the class action. You should read this Notice to determine whether your rights are affected, whether to pursue your rights as a member of the Class represented by Class Counsel, or represented by an attorney of your own choosing, or whether to opt out of the Class.

2. A class action is a type of lawsuit in which one or more named Plaintiffs bring suit on behalf of all the members of a similarly situated group, to litigate claims for all of the group, without the necessity of each member filing an individual lawsuit or appearing as an individual plaintiff. Class actions are used by the courts where the claims raise basic issues of law or fact that are common, making it fair to bind all Class members by the orders and the judgment in the case, without the necessity of hearing essentially the same claims over and over. Use of the class action eliminates the necessity of filing multiple suits, and assures that all Class members are bound by the results of the lawsuit, whether favorable or unfavorable.

3. WHAT IS THIS LAWSUIT ABOUT?

In December 2000 and January 2001, CostaGold.com maintained an interactive website on the Internet, which solicited investments of $25.00 or any multiple thereof up to $1,250.00, and which promised to return 180% of each investment eight days after receiving it. Investments with CostaGold were made in the electronic currency known as e-gold, through electronic currency accounts with e-gold Ltd., which creates and removes electronic currencies from circulation and records transactions between its account holders using a book entry system. Each investor, as well as CostaGold, held one or more electronic currency accounts with e-gold Ltd. E-gold account holders could exchange national currency for e-gold, or vice versa, using the currency exchange services offered by Gold & Silver Reserve, Inc., d/b/a Omnipay.

CostaGold paid a return on each investment in the amount promised, on or near the date promised, until January 20, 2001; on and after that date, CostaGold failed to pay any return on investments. Therefore, CostaGold failed to pay any return on investments made on or after January 12, 2001.

On or about January 19, 2001, Omnipay received a series of exchange orders pursuant to which e-gold in CostaGold's account would be exchanged for U.S. dollars and wired to specified U.S. bank accounts. Because Omnipay could not verify the authenticity of those exchange orders, it declined to fulfill them and instead established an "escrow account" to hold the e-gold balance until a proper disposition could be made. To date, no representative of CostaGold.com has responded to Omnipay's verification requests or has come forward to claim the "escrowed funds." The "escrow account" constitutes the only known source of funds to satisfy the judgment obtained in the lawsuit.

On August 29, 2002, the Plaintiffs filed this action ("the lawsuit"), on their own behalf and on behalf of all others similarly situated, to recover the "escrowed funds." On the same date, the Plaintiffs filed a garnishment action, on their own behalf and on behalf of all others similarly situated, to recover from Omnipay the "escrowed funds." The garnishment action is pending as Case No. 02CV008551 before the Honorable Dennis P. Moroney, Circuit Judge, Branch 20, in the Milwaukee County Circuit Court. Omnipay is named as a party in the garnishment action but not in the lawsuit.

4. WHAT IS THE STATUS OF THE LAWSUIT AND THE GARNISHMENT ACTION?

On February 7, 2003, the Court certified a class of Plaintiffs in the lawsuit under Sec. 803.08 of the Wisconsin Statutes. On February 13, 2003, the Court entered a default judgment in the lawsuit in favor of the Plaintiffs and the Class and against CostaGold in the amount of $1,472,417.27--the value of the "escrow account" at the time the Plaintiffs moved for judgment--plus any increase in the value of that account between that date and the liquidation of that account, plus statutory costs. The garnishment action has been contested by Omnipay and remains pending.

5. IF THERE IS A RECOVERY IN THE GARNISHMENT ACTION, WHAT RELIEF WILL THE PLAINTIFFS SEEK ON BEHALF OF THE CLASS?

The Plaintiffs will request the Court to authorize disbursement of recovered funds, less any attorney's fees and costs ordered by the Court, to each Class member in proportion to the amount of his or her uncompensated investments. The amount of each Class member's uncompensated investments will be determined by a claims procedure of which you will receive further notice. Note that the Plaintiffs do not intend to request relief that would provide any Class member with more than the amount of his or her uncompensated investments, or that would measure the proportional recovery according to CostaGold's promised 180% return. The object of this action is simply to recover as much of the uncompensated investments as possible.

6. WHO IS INCLUDED IN THIS CLASS ACTION?

The Class consists of all persons who invested money, in the form of e-gold, with CostaGold and who did not receive CostaGold's promised return, or any return, on the investment. Information obtained to date suggests that all or most of those persons made investments between January 12, 2001 and January 20, 2001; and all or most of those persons received no return on their investments.

7. DO I NEED TO DO ANYTHING IN ORDER TO PARTICIPATE IN THE
CLASS?

No. If you wish to remain a member of the Class, you do not need to do anything at this time. If the Plaintiffs recover all or part of the "escrow account" now in the hands of Omnipay, you will be notified regarding further procedures concerning what damages, if any, you may be entitled to receive. You will be notified of any proposed settlement. Also, the Court has the authority to notify the Class of other important steps or events in the case.

8. WHAT DOES CLASS MEMBERSHIP MEAN?

If you remain a member of the Class, then:

a. The Plaintiffs and Class Counsel listed in this Notice will act as your representatives and counsel in the presentation of any further requests for relief to the Court, the administration of this Class Action, and the presentation of the garnishment claim against Omnipay. If there is a recovery on behalf of the Class, Class Counsel will apply to the Court for an award of attorney's fees and expenses to be deducted from the Class recovery. If there is no recovery, Class members will have no responsibility for payment of any attorney's fees or expenses of Class Counsel or any other attorneys who appear in this action or the garnishment action. If you desire, you may appear by your own attorney at your own expense.

b. You will be entitled to participate, pursuant to a claims procedure, in any
benefits resulting from a judgment or settlement in favor of the Class.

c. You will be bound by the judgment already entered, and by any further judgments or orders entered in this lawsuit, whether favorable or unfavorable to the Class. However, in the event of a further judgment unfavorable to the Class, you will not be responsible for any court costs awarded to any other party.

9. WHO REPRESENTS THE CLASS, COSTAGOLD AND OMNIPAY?

a. Class Counsel:

The Class is represented by:

Charles H. Barr
Croen & Barr LLP
250 East Wisconsin Avenue, Suite 1550
Milwaukee, WI 53202

Douglas Joseph Rosner
P.O. Box 260095
Encino, CA 91426-0095

Steven J. Duskie
Lindley, Wiley & Duskie, P.C.
P.O. Box 1384
Killeen, TX 76540-1384

Charles H. Barr is counsel of record for the Plaintiffs in the lawsuit and the garnishment action.

b. CostaGold's Counsel:

CostaGold has not appeared in the lawsuit or in the garnishment action, and has no known counsel.

c. Omnipay's Counsel:

Omnipay is represented in the garnishment action by:

Debra A. Slater
Weiss Berzowski Brady LLP
700 North Water Street, Suite 1500
Milwaukee, WI 53202

Aron U. Raskas
Kramon & Graham, P.A.
One South Street, Suite 2600
Baltimore, MD 21202

10. HOW CAN I EXCLUDE MYSELF FROM THE CLASS?

If you do NOT want to remain a Class member and wish to exclude yourself, that is, to "opt out" of this lawsuit, then you must personally sign and return the enclosed Exclusion Request Form or other personally signed written exclusion request containing the same information to CostaGold Class Action Exclusions, c/o Deputy Clerk of Circuit Court, Branch 36, 901 North Ninth Street, Milwaukee, WI 53202. The exclusion request must be postmarked no later than sixty (60) days from the date of this Notice. Unsigned forms will not be accepted. If the funds constituting a single investment subject to this lawsuit belongs to more than one person, any or all of those persons may opt out of this lawsuit, but each person desiring to opt out must sign and return a separate Exclusion Request Form. Exclusion Request Forms may only be signed by you or someone else legally authorized to sign on your behalf.

11. WHAT IS THE EFFECT OF EXCLUSION?

By electing to be excluded from the Class you will not share in any recovery that may be obtained for Class members as the result of the judgment in the lawsuit and any judgment or settlement in the garnishment lawsuit, and you will not be bound by any further orders or judgment entered for or against the Class. You may pursue any claims you have against CostaGold by filing your own lawsuit at your own expense, or you may seek to intervene in this lawsuit as an individual plaintiff at your own expense.

12. WHERE DO I GET ADDITIONAL INFORMATION?

This Notice provides only a summary of matters regarding the litigation. You may seek the advice and guidance of your own private attorney, at your own expense, if you wish. For more detailed information, you may review the pleadings, records, and other papers on file in this litigation, which may be inspected during regular business hours at the office of the Clerk of Milwaukee County Circuit Court, 901 North Ninth, Milwaukee, WI 53202.

PLEASE DO NOT CALL OR WRITE THE COURT OR THE CLERK'S OFFICE; THE CLERK�S OFFICE IS NOT PERMITTED TO GIVE LEGAL ADVICE.

Dated at Milwaukee, Wisconsin, this _11__ day of March, 2003.

BY THE COURT:


_s/Jeffrey A. Kremers____________
Honorable Jeffrey A. Kremers
Circuit Judge, Branch 36

Posted 2:03 PM
We are pleased to report that on February 7, 2003, we were successful in obtaining an order certifying a plaintiff class in the class action against CostaGold.com. This means that the court will allow the matter to proceed as a class action. The class definition is exactly as we proposed: �all persons who invested money, in the form of e-gold, with defendant CostaGold.com (�CostaGold�) and who did not receive CostaGold�s promised return, or any return, on the investment.� The named plaintiffs were appointed class representatives, and this firm was appointed counsel for the class.

We are also pleased to report that on February 13, 2003, judgment was entered in favor of the plaintiff class and against CostaGold.com in the amount of $1,472,417.27, plus any increase in the value of the �costagold escrow account� maintained by Gold & Silver Reserve, Inc. (�Omnipay�) between the date of the motion for default judgment and the liquidation of that account.

In a separate action, we have garnished the �costagold escrow account� and we are currently litigating against Omnipay the issue of the class� entitlement to those funds. We are attempting to resolve that issue with Omnipay expeditiously and without the need for extended litigation. However, our ability to obtain an expeditious resolution of this matter is dependent in large part on Omnipay's willingness to cooperate.

We shall update you concerning further significant developments in this matter as they occur. Because there are thousands of class members, we cannot efficiently handle phone calls requesting updates, nor can we reply individually to e-mails for that purpose. Please be assured that we are working as diligently as we can to accomplish recovery of the escrowed funds, that we have made substantial progress, and that we shall do our best to keep everyone apprised of significant developments. Thank you for your interest and patience.

Posted 4:27 PM
1. On August 29, 2002, this firm filed and is currently
prosecuting a class action against CostaGold.com with the objective of
recovering the escrow account held by Gold & Silver Reserve, Inc., and
distributing the proceeds (less a reasonable attorney's fee and the costs of
prosecution) to those who did not receive the promised return on their
"spends" to CostaGold in January 2001.

2. The class action is pending as Case No. 02CV008550 in the Milwaukee
County (Wisconsin) Circuit Court, Branch 36, entitled Pappas, et al. v.
CostaGold.com, et al. Our clients are three CostaGold customers who did not
receive the promised return on their "spends," and they are the plaintiffs
and proposed class representatives in that case. A related case is a
garnishment action against Gold & Silver Reserve, which is pending as Case
No. 02CV008551 in Branch 20 of the same court.

3. If the class is certified, as we anticipate in the near future, all
CostaGold customers who did not receive the promised return on one or more
"spends" will automatically be included in the class. It will not be
necessary to take any affirmative steps to be included in the class.

4. We shall seek to obtain from e-gold.com comprehensive records of
uncompensated "spends" to CostaGold, including the identities of CostaGold
customers who made those "spends."

5. We are pleased to receive from putative class members their identifying
information, the aggregate amount of their uncompensated "spends," and, if
available, the actual e-records of their spends. We shall cross-check this
information against the information received from e-gold in an attempt to
assure that no one is inadvertently left out.

6. Because we cannot efficiently handle phone inquiries from the thousands
of putative class members, we ask that those persons contact us only by
e-mail: cg-classaction@croenbarr.com.