Netflix to give free month of DVDs to settle suit

Iria · May 2, 2006, 06:37 PM

Source: AZCentral
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SAN FRANCISCO - A judge has approved a class-action settlement requiring Netflix Inc. to offer a free month of DVDs to 5.5 million current and former subscribers, resolving a case that prompted the online rental service to acknowledge it gives preferential treatment to its most profitable customers.

The settlement, released Monday after being approved last Friday, had been delayed since late March when San Francisco Superior Court Judge Thomas Mellon Jr. balked at a proposal that would have guaranteed payments totaling $2.5 million to a handful of lawyers.

Under Mellon's final order, Netflix must pay $1.3 million to Adam Gutride and Seth Safier - the San Francisco attorneys who filed the suit in September 2004 - and another $60,000 to lawyers whose objections to an earlier agreement helped shape the final settlement.

May 2, 2006, 06:37 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 89	Netflix to give free month of DVDs to settle suit Source: AZCentral ___________ SAN FRANCISCO - A judge has approved a class-action settlement requiring Netflix Inc. to offer a free month of DVDs to 5.5 million current and former subscribers, resolving a case that prompted the online rental service to acknowledge it gives preferential treatment to its most profitable customers. The settlement, released Monday after being approved last Friday, had been delayed since late March when San Francisco Superior Court Judge Thomas Mellon Jr. balked at a proposal that would have guaranteed payments totaling $2.5 million to a handful of lawyers. Under Mellon's final order, Netflix must pay $1.3 million to Adam Gutride and Seth Safier - the San Francisco attorneys who filed the suit in September 2004 - and another $60,000 to lawyers whose objections to an earlier agreement helped shape the final settlement.