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Wal-Mart Wants Out of DVD Class Action Lawsuit

March 13, 2012
Colson Hicks Eidson

It probably seemed like a good idea at the time. Back in 2005, Wal-Mart and Netflix agreed to help each other out with DVD rentals and sales. Wal-Mart’s DVD subscription service proved to be a bust, so it encouraged customers to rent DVDs from Netflix. In-turn, Netflix agreed to promote Wal-Mart’s DVD sales business.

Then in 2009, Netflix subscribers filed a class action lawsuit alleging that the two companies colluded in an effort to dominate the DVD sales and rental markets. The judge is yet to rule on the case’s merits, but Wal-Mart is getting out early and settling while Netflix stays in the litigation, according to

Under the proposed settlement, still awaiting approval, Wal-Mart will pay $27.25 million to customers in cash and gift cards. There will be a hearing on March 2012, and the judge will rule on the settlement. On Netflix’s end, subscribers have until February to file a claim in the class action lawsuit. A spokesperson for Netflix said that the class action is without merit and the company will continue to fight it.

If you are a Netflix customer, are you happy with their subscription service?
Colson Hicks Eidson – Florida class action lawyers