NorCal Court Approves $9 Million Netflix Settlement1 Aug, 2012 By: Erik Gruenwedel
A Northern California District Court has given preliminary approval of a $9 million legal settlement with Netflix, first disclosed in February.
In addition to the fine, Netflix has agreed to change its data retention practices so that it separates subscribers’ viewing history from identification information for those subs who have not been a Netflix for at least 365 days, with some exceptions, according to the civil case’s plaintiff lawyers.
Current or former Netflix subscribers as of July 5 who live in the U.S. or its territories are included in the settlement.
On top of paying $2.25 million in legal fees and $25,000 in legal expenses, the $9 million will be put into a settlement fund, from which court-approved donations will be made to not-for-profit organizations, institutions, or programs that educate users, regulators, and enterprises regarding issues relating to protection of consumer privacy, identity, and personal information through user control, pay notice and settlement administration expenses.
The class-action case was filed in 2011 by the law firms of Edelson McGuire LLC and Wilson Sonsini Goodrich & Rosati PC.
The fund will also award $30,000 to each of the six lead plaintiffs who alleged Netflix violated provisions of the 1988 Video Privacy Protection Act that disallows video rental services from accessing subscriber information up to two years after cancelation.
For more information about the lawsuit, settlement, and other relevant information, visit www.VideoPrivacyClass.com or call 866-898-5088.