NETFLIX INC: Calif. Judge Approves Subscribers' Suit Settlement

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Class Action Reporter
Nov 19, 2007

San Francisco Superior Court Judge Thomas Mellon Jr. approved a class-action settlement against DVD rental service Netflix, Inc., MarketWatch reports.

The judge required the Company to offer a free month of DVDs to 5.5 million current and former subscribers, resolving a case that prompted the online rental service to acknowledge it sometimes delays shipments to its less profitable customers.

Under Judge Mellon's final order, the Company must pay $1.3 million to Adam Gutride and Seth Safier - the San Francisco attorneys who filed the suit in 2004 - and another $60,000 to lawyers whose objections to an earlier agreement helped shape the final settlement. The Company expects to begin sending out notices of the final settlement this month.

The settlement had been delayed since March when Judge Mellon balked at a proposal that would have guaranteed payments totaling $2.5 million to a handful of lawyers.

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