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Wal-Mart Settlement Offer: Potentially Pocket Change for Class Member Participants

In a consolidated federal case, a class of Netflix subscribers initiated a lawsuit alleging a price agreement between Netflix and Wal-Mart which allowed Netflix to overcharge customers and manipulate subscription pricing. In a proposed settlement by Wal-Mart scheduled for a final hearing on the merits in March, Netflix subscribers have been offered $27.5 million.

The settlement, covering anyone who subscribed to Netflix at any time between May 19, 2005 and September 2, 2011, would leave $19 million left to pay the class if lawyers are granted their requested 25% (nearly $6.9 million) plus potentially $1.7 million to cover litigation costs. If everyone eligible in this action opts to participate in the settlement, each class member would recover less than $1.00 each.

The full AP report is available here.

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Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.