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Netflix reveals $9m legal payout

Netflix reveals $9m legal payout

Netflix has paid $9m (£5.7m) dollars to settle a privacy-related legal action, a financial filing has revealed.

The online streaming firm, which made no admission of wrongdoing, said the settlement related to compliance with the Video Protection Privacy Act.

The 1998 US legislation prohibits the disclosure of video rental histories.

It is reported that the legal action concerned allegations that Netflix was failing to delete the viewing histories of customers who had left the service.

The settlement put a significant dent in Netflix’s finances – after accounting for the payment fourth-quarter earnings fell from $40.7m (£25.8m) to $35.2m (£22.3m).

Read More/Source: BBC News

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