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Wal-Mart Netflix Class-Action Settlement
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In 2005, Wal-Mart and Netflix made a deal. Wal-Mart would kill its DVD rental subscription service and push customers towards Netflix. Netflix wouldn’t sell DVDs and would instead tell folks to go to Wal-Mart. It was a win-win deal for both companies. It was a lose-lose deal for customers and those familiar with collusion and anti-competitive practices will know that something like this just isn’t going to fly. Competition brings down prices and so the argument is that without Wal-Mart keeping Netflix in check, DVD rental subscription prices wouldn’t be as low as they “normally” would. You know what’s next – lawsuits!
Class action lawsuits were filed against both companies and last year Wal-Mart settled (Netflix is still fighting). If you live in the United States (and Puerto Rico) and paid a subscription fee to Netflix anytime between May 19, 2005 and September 2, 2011, you are a member of the class. Visit the settlement website for more information but here is the claim form. You have until February 14, 2012 to file a claim.
Unfortunately, the settlement was for $27,250,000 and 25% goes to to the laywers. An additional $5,000 for each class representative and there will also be fees and costs deducted. Then, divide that by everyone who files a claim (which will be many) and chances are we’ll all get cash or gift cards worth about a nickel. 
(Photo: alphageek)
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Yeah, it’s a shame that because of the number of people involved and the cuts people take, most people who were affected won’t actually get much/anything. I recently got an email about a Ticketmaster class action case – I think I’m going to be getting a $1.50 voucher towards my next Ticketmaster purchase, which I probably won’t even use.
I agree. Ticketmaster came out a winner in that verdict.
I wonder if it will hurt Netflix stock when their settlement is reached. $27 million to Wal-Mart is a drop in the bucket. Anxious to see what the settlement actually amounts too! Hopefully at least enough for a free Netflix rental!
A nickle is a nickle
must agree, may not be much but it’ll still be that much more than I have today
I signed up for a Visa/MC/Amex class action suit years ago for improperly calculated fees related to foreign purchases. I figured maybe I would get a few bucks out of it. Just yesterday, my wife and I each received a check for close to $20 each!
That’s a good point. It never hurts to get some skin in the game, when the game is free to enter and only has upside for those entering.
There are supposed to be about 25 million people in the class. Many/most won’t file claims. For the credit card settlement Strebkr mentions only about 1/3 claimed and that originally was for $25 minimum (later reduced).
I’m guessing this will end up worth $1-2 per claim.
@freeby50 – do you mean the Wal-Mart Netflix class action will only be $1-2 per claim?
I would have gone for the cash claim on that one, but you had to mail it in. You could do a gift card claim online so I opted for that.
This has been a really weird week, but yesterday my wife got a check for $0.03 cents in an eBay class action suit related to fees in a specific category.
Again, I don’t remember signing up for that one, but oh well. I hope I didn’t have to waste a stamp to mail something in for that claim.