Protests Put Netflix Settlement On Hold

“A proposed class-action settlement involving Netflix customers may be rewritten in response to complaints that the agreement does little for consumers while rewarding the company and the lawyers who filed the suit,” writes Caroline E. Mayer of the Washington Post.

A hearing over the $4 million settlement had been scheduled in California Superior Court today but was postponed for a month.

Plaintiff attorneys, who were slated to receive $2.5 million in the proposed settlement, said the delay enables both sides to review more than 50 objections, including one by the Federal Trade Commission and another by the Trial Lawyers for Public Justice, a national public-interest law firm. Netflix Inc. declined to comment on the delay.

In the past few years, both the FTC and the trial lawyers group have been actively protesting class-action settlements that bring little value to consumers, usually coupons with little monetary value, but pay off handsomely for lawyers.

For more, check out the Washington Post.