Delay On Netflix Settlement
The approval of a settlement by NetFlix following a class action suit has been delayed due to complaints that one group of plaintiffs is being favored over another. The settlement would affect over six million former and current subscribers of the online DVD rental company as well as legal professionals dealing with the cases.The Federal Trade Commission had pointed out that the agreement proposed by NetFlix appeared "dangerously close to being a promotional gimmick." This caused the approval of the settlement to be rescheduled to February 22nd, 2006.
Further objections were raised by the Trial Lawyers for Public Justice with regards to the $3.98 million that was proposed for the settlement. This is because 64% of this settlement figure was to go on payment to class action lawyers, with only the remainder to share among the customers.
A representative of the firm stated: "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."
Topic Added February 2nd, 2006
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