Plaintiffs are challenging the Skype Credit Expiration Policy and allege that the Skype User Accounts and Skype Credit constitute "gift certificates" that cannot expire or be subject to inactivity fees under various states' laws and Defendants unlawfully applied the Skype Credit Expiration Policy against their Skype Credit balances after 180 days of inactivity.

Defendants deny that they did anything wrong whatsoever, and contend that Plaintiffs' claims are meritless. No court has decided which side is right, and both sides have agreed to resolve the cases and provide relief to the Settlement Class instead of litigation.