A proposed settlement affecting Netflix Inc. subscribers has been delayed due to complaints that it favors the online DVD rental service and lawyers who sued the company. Anyone who accepts the offer will have to cancel the service after a month or will be automatically charged. "This settlement is a striking example ... of class-action settlements that provide substantial benefits to the defendants and class counsel but little or no relief to the class," the public interest law firm argued.
January 17, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
A proposed legal settlement affecting more than 6 million current and former Netflix Inc. subscribers has been delayed to address complaints that the deal unfairly favors the online DVD rental service and lawyers who sued the company.
Approval of the class action settlement in state court was rescheduled to Feb. 22 after the Federal Trade Commission raised a red flag in a legal brief this week that warned the agreement “appears dangerously close to being a promotional gimmick” for Netflix.
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