From what I've read, it looks like its pretty difficult to prove that the transfer of domain ownership was illegal...if it went through, they had access and were authorized...and that is the position GoDaddy will take.
1. Alleged thief logs into my domain account with godaddy.
2. Changes details, which he can becuase he has access and is deemed to be the owner or the authorized agent of the owner.
3. Unlocks domains, changes whois data and transfers domain to his own ownership.
4. At the point that this has occurred, I am nobody, because I am no longer the registered owner
and the registrar has to say "we cannot talk to you, you aren't the owner"
Some how we've either gotta prove that....
a) GoDaddy are intentionally permitting this to happen, or are negligent to the point where they might as well be intentionally letting it happen
OR
b) that the domain transfers occured in such a way that violated GoDaddy's own terms and conditions, or promises as to security of purchases
Alone a case will be weak and expensive. If we got a few related instances going, cost goes down and the case grows strong
corporations generally BET on customers like us not having the balls or the cash to take em on, but get a few people together with similar circumstances, and it gets REAL easy to prove negligence.
Soooo if I can get some support from fellow victims who have proof, circumstances and records of their individual thefts and we all band together and present an attorney (Eric) with the evidence, we may have a cheaper way better chance because we will be splitting the costs between yourselves and the lawyer (an internet fraud/theft specialist) will have greater information to draw informaion from, it may even make his carreer if he is successful.
There is copyright issue there as well that will permit me at least to legitimately sue GoDaddy for permitting copyright material. The fact that he used teleport to copy my sites also gives me valid grounds to subpoena GoDaddy for the registrant's details, which should give me the real data on this scumbag.
This will continue to happen while godaddy can get away with whatever it is that they are doing.