Be careful Islandmaan. There are a ton of fake emails going around that LOOK like they come from Paypal or Citibank and they direct you to a login page. They are clones and are set up to capture your password when you attempt to login.
I get hit with these almost daily. I am unaware of a class action suit. I am not saying one doesnt exist or that the letter you received was a fake, but I am saying be VERY careful with mail regarding Paypal or any online banking. Phishing as its called is running rampant.