More trouble is on the horizon for Netflix. A class action lawsuit has been filed against Netflix and Wal-Mart Stores Inc. and Walmart.com involving the price of online DVD rentals. The lawsuit is entitled Online DVD Rental Antitrust Litigation and is in the jurisdiction of the United States District Court for the Northern District of California (www.OnlineDVDclass.com). Anyone who paid a subscription fee to rent DVDs online from Netflix anytime from May 19, 2005 to September 2, 2011 is considered a class member. Please note that this does NOT include free trial offers. Emails are currently being sent to class members in the lawsuit.
The Wal-Mart and Netflix DVD Class Action Lawsuit revolves around claim that Wal-Mart and Netflix conspired and reached an unlawful agreement under which Wal-Mart would withdraw from the online DVD rental market and Netflix would not sell new DVDs. This action resulted in higher prices for DVD rentals according to the lawsuit. Netflix and Wal-Mart deny all wrong doing in the case.
Wal-Mart however has agreed to settlement terms in order to avoid any further court cost. Wal-Mart will pay $27,250,000, in cash and gift cards, to those who qualify as a class member. In order to participate in the settlement you must file a claim form before February 14, 2012. Claim forms can be found at OnlineDVDclass.com or by calling toll-free 877-389-4469 and request a form by mail. If you wish to exclude yourself or object to the settlement you have until February 14, 2012. A settlement fairness hearing will be held on March 14, 2012 to determine of the settlement is fair and reasonable. The hearing will be held at the United States District Court for the Northern District of California, located at 1301 Clay Street, Oakland, CA, 94612, in Courtroom #3. This is for the Wal-Mart settlement only. The Netflix trial is scheduled to begin on January 23, 2012. If you wish to remain in the Netflix Litigation Class, you do not need to take any action at this time. If there is a recovery from Netflix, you may receive further instructions at that time.
