The concerns were raised by the Federal Trade Commission, which claimed that the agreement as it stood "appears dangerously close to being a promotional gimmick" in favor of Netflix. Due to these concerns the settlement, which was a class action one, has been rescheduled for approval towards the end of February.
Further concerns were raised by Trial Lawyers for Public Justice, which voiced concern over the fact that the lawyers suing Netflix were set to receive over sixty percent of the total settlement figure, equating to around $2.53 million out of a total $3.98 million budget, leaving little for the actual current and former subscribers.
The suit against the company was filed in 2004, and alleged that the company provided false information with regards to how quickly DVDs were sent out to customers that subscribed to the service.
Topic Added January 23rd, 2006
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