Customers involved in the action say sites hosted by RegisterFly have been disappearing over the last year, as domains are parked, usually after the domain has expired. But customers claim that attempts to renew domains have failed suspiciously.

ZDNet quotes Justin Kulhawick, who operates RegisterFlies.com, a site through which he gathers complaints against the company. He says RegisterFly is using the parked domains to make money from advertising traffic, or selling the domains to other customers.

Kulhawick and Dummit say the RegisterFly issue has yet to be understood for the scandal it is.

Dummit's class action suit - against RegisterFly CEO Kevin Medina, director John Naruszewicz and associated companies Unifiednames and Hosting Services Group, as well as domain registrar eNom and ICANN - is gaining momentum around the world, with customers from Australia signing up too. There are 700 plaintiffs so far.

According to Dummit, 75,000 customers have lost their domains. He says the value of dollars lost can't be calculated, as some customers' businesses were shut down suddenly. He says the lawsuit will seek damages, and will seek to have RegisterFly shut down.

He also says that ICANN has been neglectful in its duty to protect customers. RegisterFly's ICANN accreditation was revoked on March 16, but the company was still operating a month later. ICANN, he says, should have shut the company down months ago.

Last month, during an internal struggle for control of the company, a US judge handed control back to the ousted CEO Medina. ICANN gave Medina 15 days to right the ship, or he faced losing his accreditation.

According to ZDNet, ICANN reported on April 17 that RegisterFly had been ordered by the US Federal Court to hand over accurate data for its registry entries.