The Checkout

Netflix Settlement Update

This is just in from Michale Liedtke, AP's business writer who attended today's San Francisco court hearing on the proposed Netflix settlement:

"A judge on Wednesday delayed approval of a proposed class-action settlement that would require Netflix Inc. to offer a free month of DVD rentals to resolve a lawsuit that prompted the popular online service to acknowledge it gives preferential treatment to its most profitable customers.

"San Francisco Superior Court Judge Thomas Mellon Jr. indicated he needed more time to figure out how much he will reduce the fees of two San Francisco lawyers representing the interests of 5.5 million current and former Netflix subscribers.

"The attorneys, Adam Gutride and Seth Safier, had filed papers seeking $2.3 million in fees to be paid by Netflix, but Mellon said he plans to award them significantly less money.

"The judge also said he also expects to limit the fees of attorneys who objected to an earlier settlement to $100,000 -- about half the total that group of lawyers wanted.

"Mellon's refusal to approve the proposed attorney fees represents the latest twist in an 18-month-old case revolving around allegations that Netflix had been exaggerating how quickly it delivers movies to subscribers."

By  |  March 22, 2006; 9:18 PM ET Legal Battles/Settlements
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I'm a class member who moved to Canada last year. But Netflix doesn't serve Canada, so it seems I can't get the free DVD rentals. I called all kinds of people at Netflix about it and was referred to Gutride's office. I wrote him a letter asking what my compensation is and haven't gotten a response. I even spent a week in San Francisco on vacation last month and offered to stop by his office.

Posted by: Sandwich Repairman | March 23, 2006 9:56 PM

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