Netflix / Walmart Class Action

I am not representing clients in this matter. I have posted the emailed notice below for informational purposes only. Please read further for more information about the Netflix / Walmart Class Action. People have been asking if the mass email notifying them of this class action settlement is a scam.  You can read the Complaint here .  If you want to verify that this case is real, you can look it up on Pacer or Public Access to Court Electronic Records (PACER) (http://www.pacer.gov/). This case is MDL No. 2029 (MDL stands for multidistrict litigation).  Again, I am not representing clients this matter. If you have questions, please go to www.OnlineDVDclass.com for more information.

11/16/2011 Update: I found a great article by Jeff Roberts on Yahoo finance about the email that went out on 11/15/2011 about the Netflix – Wal-Mart Class Action Lawsuit Settlement.  The article is entitled: “Netflix’s Email About DVD Price-Fixing Settlement Leaves Customers Confused.”

11/21/2011 Update: CNN.com has posted a story about the Netflix/Walmart Class action here: Netflix subscribers offered class-action payout from Wal-Mart

11/22/2011 Update: Rust Consulting has confirmed with me that they are Settlement Administrator and were responsible for the mass email informing putative class members of the settlement.  The 11/15/2011 mass email (see below) about the Walmart / Netflix class action settlement was not a scam.

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If You Rented Online DVDs from Netflix A Class Action and a Settlement with Wal-Mart May Affect Your Rights

Para una notificación en Español, llamar 1-877-389-4469 o visitar http://www.OnlineDVDclass.com

Records show that you paid a subscription fee to rent DVDs online from Netflix anytime from May 19, 2005 to September 2, 2011. We are emailing to tell you about a Settlement and lawsuit that may affect your legal rights. You may be eligible to receive a cash payment or gift card from the Settlement. Please read this email carefully. Go to www.OnlineDVDclass.com for more information.

There is a lawsuit against Wal-Mart Stores Inc. and Walmart.com USA LLC (together called “Wal-Mart”) and Netflix, Inc. (“Netflix”) involving the price of online DVD rentals. The Class Action seeks money for current and former Netflix subscribers. A Settlement has been read with Wal-Mart. Netflix and Wal-Mart believe that the lawsuit has no basis. Netflix has not settled the lawsuit and the litigation continues against it.

What is the lawsuit about?

The lawsuit claims that Wal-Mart and Netflix reached an unlawful agreement under which Wal-Mart would withdraw from the online DVD rental market and Netflix would not sell new DVDs. Wal-Mart and Netflix deny that they entered into such an agreement or that they have done anything wrong, that the Plaintiffs have been harmed in any way, or that the price of online DVD rentals was raised or inflated by any agreement between Wal-Mart and Netflix. The Court has not decided who is right.

The Litigation Class Against Netflix

Who’s included in the Netflix Litigation Class? Any person or entity in the United States that paid a subscription fee to Netflix anytime from May 19, 2005 to September 30, 2010.

What are my rights in the Netflix Litigation Class?

Remain in the Litigation: If you wish to remain in the Litigation, you do not need to take any action at this time.

Get out of the Litigation: If you wish to keep your individual right to sue Netflix about these claims you must exclude yourself. To ask to be excluded, send a letter to the address below, postmarked by February 14, 2012, that says you want to be excluded from In re: Online DVD Rental Antitrust Litigation, MDL No. 2029. Include your name, address, and telephone number.

The Wal-Mart Settlement Class

Who’s included in the Wal-Mart Settlement Class? Any person or entity living in the United States or Puerto Rico that paid a subscription fee to rent DVDs online from Netflix anytime from May 19, 2005 to and including September 2, 2011.

What does the Settlement provide? Wal-Mart will pay $27,250,000, in cash and gift cards, to settle the lawsuit. If you qualify, you can get a cash payment or a gift card that can be used at http://www.walmart.com. The actual amount paid in cash and in gift cards depends on the total number of valid claims filed.

Class Counsel will ask the Court to award the following: (1) attorneys’ fees up to 25% of the Settlement Fund, plus costs that Class Counsel estimate at up to $1.7 million, (2) administration and notice costs, and (3) $5,000 for each of the Class Representatives (up to $80,000 total which could include the class representatives from cases filed in California state courts). After these fees and costs are deducted from the Settlement Fund, the remaining amount will be equally divided amongst the Wal-Mart Settlement Class Members who file valid claims.

How to get Settlement benefits? You must submit a Claim Form to get benefits. You can submit a Claim Form online (for gift cards only) or by mail. The deadline to submit a Claim Form is February 14, 2012. Click here to get a Claim Form or call 1-877-389-4469.

What are my rights in the Wal-Mart Settlement Class?

Remain in the Settlement: If you wish to remain in the Wal-Mart Settlement Class and get benefits, you need to file a claim.

Get out of the Settlement: If you wish to keep your right to individually sue Wal-Mart about the claims in this case you must exclude yourself by February 14, 2012 from both the Wal-Mart Settlement Class and the Netflix Litigation Class. See the instruction on how to “Get out of the Litigation” above.

Remain in the Wal-Mart Settlement Class and Object: If you stay in the Wal-Mart Settlement Class you can object to it by February 14, 2012.

The detailed notice, available at http://www.OnlineDVDclass.com or by calling 1-877-389-4469, explains how to exclude yourself or object.

The Court will hold a hearing on March 14, 2012 to consider whether to approve the Settlement, and a request for attorneys’ fees, costs, and expenses. If you wish, you or your own attorney may ask to appear and speak at the hearing at your own cost.

For More Information: 1-877-389-4469 http://www.OnlineDVDclass.com
Netflix Lawsuit, PO Box 2602, Faribault, MN 55021-9602

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4 Comments

Filed under Business Misconduct

4 responses to “Netflix / Walmart Class Action

  1. Pingback: Accused D.C. Defense Lawyer Wins Access To Court Records

  2. Pingback: Netflix Stock at $81.18; Will Fight Class Action Lawsuit « The Service Leader

  3. Nicole

    If Netflix could do something to further harm their company, this coming out in the open is certainly that. Since I work for DISH Network, I found out about the Blockbuster Movie Pass prior to it releasing last month. The pass offers a much larger base of entertainment than Netflix and it is nice to know that they are not being sued for making poor business decisions.

  4. Pingback: Hawaii State Courts Improve Access to Electronic Records

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