Walmart Offers $27 Million Settlement In Netflix Class-Action Suit

If you’ve received an email saying you’re entitled to make a claim in a class-action lawsuit against Netflix and Walmart, don’t toss it. Walmart has thrown in the towel and is offering to settle with customers who sued the retail giant and Netflix after the two companies made a deal to promote each other’s DVD businesses.

Under the 2005 agreement, Walmart got out of the mail-order DVD rental business and began pitching Netflix’s service, while Netflix agreed to promote Walmart’s DVD sales business.

The 2009 lawsuit was brought by Netflix subscribers who charged the two companies with collusion and claimed that the deal helped Netflix dominate the market for mail-order DVD rentals. A California judge agreed that the case could be brought as a class action.

Walmart is putting $27.25 million in cash and gift cards into the settlement fund. Anyone who had a Netflix DVD rental plan from May 19, 2005 through September 2, 2011 can make a claim between now and Feb. 14, 2012. Walmart continues to say that it believes “that the lawsuit has no basis.”

Netflix plans to continue fighting the lawsuit, and Netflix spokesman Steve Swasey told CNNMoney: “We believe the lawsuit has no merit and we will continue to aggressively defend it.”

www.OnlineDVDclass.com [Official Settlement Site]
Netflix customers offered class action payout [CNNMoney]