Te'o v. eCost.com, Inc., PFSweb, Inc., et al.

On October 8, 2008, the Alameda County Superior Court entered a Consent Judgment in Te'o v. eCost.com, Inc., et al., which resolved citizen enforcer Jamie Te'o's allegations that defendants eCost.com, Inc. and PFSweb, Inc. (collectively "eCost") sold motherboards and other electronic circuitry products with solder containing the heavy metal lead in the State of California without providing the requisite health hazard warnings.

As part of the settlement, eCost agreed not to sell any motherboards or PCI cards in California after July 15, 2008, unless the motherboards and PCI cards are sold or shipped with Proposition 65 warnings or exempted pursuant to Section II.B of the Consent Judgment. Due to eCost's cooperation during the settlement process, Te'o agreed to credit a portion of the civil fine that would otherwise be applied.

The Consent Judgment requires settlement payments of $22,500, to be divided therein between civil penalties, 75% of which are paid to California's Office of Environmental Health Hazard Assessment, and compensation to whistleblower Te'o and his counsel for their successful enforcement of this matter in the public interest.