Wal-Mart/Netflix Online DVD Class Action Settlement

Class action settlement notices regarding Netflix and Wal-Mart’s Online DVD Renal Antitrust Litigation have started to arrive, detailing how consumers can file a claim to receive a share of Wal-Mart’s proposed $27.25 million class action settlement of the case.

The proposed settlement will resolve Wal-Mart’s portion of the 2009 antitrust class action lawsuit, which accuses Netflix and Wal-Mart of making a pact in 2005 to illegally split the DVD market into rental and retail spaces to reduce competition. The pact was culminated on May 19, 2005 when the companies announced Wal-Mart.com would stop renting DVDs online and Netflix would not offer them for resale. The agreement was made after Blockbuster began offering DVD rentals online, and is believed to have been established to push Blockbuster out of the market. The result, however, is that Netflix customers paid higher subscription prices because of the alleged pact.

Wal-Mart denied any such pact was made, but agreed in January 2011 to settle its portion of the online DVD monopoly class action lawsuit. Netflix also denies the pact, and is still fighting the accusations. If Netflix reaches a settlement, even more money may become available for Class Members.

Class Members of the Wal-Mart online DVD class action settlement include any person or entity living in the United States or Puerto Rico that paid a subscription fee to rent DVDs online from Netflix any time from May 19, 2005 to September 2, 2011.

Class Members of the Wal-Mart online DVD settlement can choose to receive either a cash payment or gift card from the class action settlement if they submit a claim form by February 14, 2012. The amount of these individual awards will be based on how many people file claims for the $27.25 million settlement. Benefits will be distributed to Class Members after the Court grants “final approval” of the settlement at the March 14, 2012 Final Approval Hearing.

Class Members of the Netflix Litigation Class (those who paid a subscription fee to Netflix any time from May 19, 2005 to September 30, 2010) do not need to take any action at this time. If there is a recovery from Netflix, you will receive further instructions at that time. You may be included in both the Netflix Litigation Class and the Wal-Mart Settlement Class.

UPDATE: A federal judge has dismissed the class action lawsuit against Netflix.

Claim forms and more information on your rights in the Wal-Mart/Netflix Online DVD Class Action Lawsuit Settlement can be found at www.OnlineDVDClass.com.