Netflix Settles Throttling Case2 May, 2006 By: Jessica Wolf
“Throttled” Netflix users will get a free month of rentals as the result of a May 1 decision by the San Francisco Superior Court.
The end of the class action suit against the online rentailer will see Netflix shelling out free-month passes to 5.5 million past and present subscribers, according to reports.
Frequent Netflix users complained in September 2004 about the company's practice of “throttling” high-volume renters down the queue for new releases.
The company also will have to pay legal feels of $1.3 million to the class action attorneys who filed the suit, and $60,000 in other fees, according to reports.
In March, a San Francisco Superior Court judge put a hold on a tentative settlement in the case, saying he planned to award less than the $2.3 million in fees claimants sought against Netflix.
Netflix will start informing users of their right to a free month of rentals starting this month, according to reports.