+ Reply to Thread
Results 1 to 14 of 14
  1. #1

    Netflix and Walmart Class Action Law Suit

    Not sure if this has been posted yet I did a quick search for netflix and walmart on the front page,


    NEW YORK (CNNMoney) -- Millions of current and former Netflix customers woke up Wednesday to an e-mail about a class-action lawsuit involving the price of online DVD rentals.
    It's legit, and it's the latest twist in a legal saga that started two years ago.
    In May 2005, Wal-Mart and Netflix struck a pact: Wal-Mart would scrap its struggling DVDs-by-mail subscription service and instead encourage its customers to sign on with Netflix. In return, Netflix agreed to promote Wal-Mart's DVD sales business.
    But in 2009, a group of Netflix subscribers banded together and filed a lawsuit charging the two companies with collusion. The gist of their complaint is that the two companies agreed to carve up the market and stay off each others' turf: DVD rentals for Netflix and DVD sales for Wal-Mart. The deal helped Netflix entrench itself as the market's dominant player and raise its subscription prices, the lawsuit alleges.
    Last year, a California judge certified the lawsuit as a class action, bringing Netflix's entire subscriber base into the lawsuit. He has not yet ruled on the merits of the case.
    Wal-Mart (WMT, Fortune 500) decided to take its chips off the table. It agreed earlier this year to settle the case, without admitting any fault. Netflix (NFLX) is continuing to fight and remains in litigation.
    "We believe the lawsuit has no merit and we will continue to aggressively defend it," Netflix spokesman Steve Swasey told CNNMoney.
    The Wal-Mart settlement class includes anyone in the U.S. or Puerto Rico who paid a Netflix subscription fee for DVD rentals from May 19, 2005, through September 2, 2011. More details on the lawsuit are available at www.OnlineDVDclass.com
    Under the terms of the proposed settlement, Wal-Mart will pay $27.25 million in cash and gift cards -- but a good chunk of that money will go to the lawyers. Subscribers could take home mere pennies.
    The legal team that brought the lawsuit is asking the court to award attorneys' fees of up to 25% of the settlement cash, totaling $6.8 million, plus other costs estimated at $1.7 million. The suit's lead plaintiffs -- the Netflix subscribers who brought the complaint -- would receive a proposed $5,000 each. The remaining money would be split up among those who fill out a claim form and put in for their share of the settlement.
    That leaves an estimated $18 million or so to be divvied up over a class that could include millions of people. Netflix had nearly 24 million U.S. subscribers as of Sept. 30, the company said in its third-quarter earnings report. If even half of them were to file claims, each claimant would receive a payment of around $1.50.
    Netflix subscribers have until Feb. 14 to file a claim if they wish to be included in the settlement. The judge overseeing the case will hold a hearing in March about the settlement's proposed terms, and will decide whether to uphold or reject the deal.
    In an ironic twist, Netflix and Wal-Mart aren't so buddy-buddy these days. Last year, Wal-Mart launched a streaming movie service that takes direct aim at its former partner
    My mom got an email regarding it as well. Looks like this might be the nail in the coffin for Netflix, assuming that Walmart isn't the only one that ends up paying out.

    Source: http://money.cnn.com/2011/11/16/tech...suit/index.htm

  2. #2
    THIS IS BREGOR'S STORY
    Beard +1

    Join Date
    Feb 2007
    Posts
    23,096
    BG Level
    10
    FFXI Server
    Bahamut

    (The judge) has not yet ruled on the merits of the case.
    zzzzzzzzz

    This could all be thrown out, just sounds like basic cross-promotion to me.

  3. #3
    GATTACA!
    Sweaty Dick Punching Enthusiast

    Join Date
    Dec 2009
    Posts
    25,831
    BG Level
    10

    I thought it was a spam email...

  4. #4
    I am by far the worst poster in most threads, including Olroy and Mazmaz. I go from 0 to Mad in 0.6 seconds. Also, 8==============D
    Join Date
    May 2011
    Posts
    3,149
    BG Level
    7
    FFXI Server
    Gilgamesh

    Quote Originally Posted by Moss View Post
    I thought it was a spam email...
    same, I saw the e-mail too but didn't look into it

  5. #5
    listen!
    Join Date
    Apr 2011
    Posts
    7,236
    BG Level
    8
    FFXI Server
    Sylph

    Cool, $1-2. brb, planning out what i'm going to do with it.

  6. #6
    Fuck It, I'm Goin Deep Fan Club President
    Join Date
    Jul 2007
    Posts
    54,891
    BG Level
    10
    FFXI Server
    Ifrit

    dont remember seeing this email this morning..

  7. #7
    Shimmy shimmy ya shimmy yam shimmy ya
    Sweaty Dick Punching Enthusiast

    Join Date
    Nov 2007
    Posts
    43,620
    BG Level
    10

    Nice. I'll be finally able to get that Lemon Snapple Iced Tea I always wanted.

  8. #8
    Relic Weapons
    Join Date
    Jan 2006
    Posts
    332
    BG Level
    4

    I use to work at Wal-mart and a few months after I left for another job I got a letter about a class action law suit being claimed against them. I could either take 25$ or wait for a settlement. I waited for the settlement and got 65$. This was for current and past employees though. Was stoked to get that by total surprise.

  9. #9
    Sandworm Swallows
    Join Date
    Jul 2008
    Posts
    7,158
    BG Level
    8

    Good god we need to go back to the days where people had to fight off bears just to survive, then they wouldn't have time to even think of cooking up bullshit like this. This shit happens because people have nothing better to do anymore. It's sad, really.

  10. #10
    Sleep Deprived Galka BLM
    Join Date
    Nov 2007
    Posts
    1,215
    BG Level
    6
    FFXI Server
    Odin

    Just throwing this out there, but "nail in the coffin for netflix"? Do you not comprehend how much money they have? They could probably shell out a billion and still be fine.

  11. #11

    Didn't Netflix lose something like 600,000 customers over the summer?

  12. #12
    Cerberus
    Join Date
    May 2009
    Posts
    423
    BG Level
    4
    FFXI Server
    Siren

    Quote Originally Posted by Orph View Post
    Didn't Netflix lose something like 600,000 customers over the summer?
    yes and I too thought the email was just spam and deleted it.

  13. #13

    Quote Originally Posted by Komm Suesser Tod View Post
    Just throwing this out there, but "nail in the coffin for netflix"? Do you not comprehend how much money they have? They could probably shell out a billion and still be fine.
    Netflix was a private company before going public, while they may have made a lot of money in the past I don't think they are nearly in the same situation as they once were. (I'm not familiar with their cost structure and if there is an estimate out there I would gladly be willing to crunch the numbers.)

    The biggest issue with companies is working capital to be able to make the company be able to operate, and I don't know how big of a point this is to stress. If I had to guess the move towards going public was an effort to generate more capital, because they were A) either expanding or B) Not managing their capital well and this was an effort to bring in more revenue. Again, since it was a private company I'm guessing a lot of those owners took out A LOT of the capital and spent it on either dumb things or just poorly managed it.(think MC hammer, or hell think a lot of companies that failed) This happens far more often than one would think.

    Ever since going public their stock has been tanking a lot, and I wonder how much harder it has been for them to generate income. They are continuously losing customers, their previous costs continue to go up. Their investors are insecure about their investment right now as well I would assume with all the dumb management decisions they have been making. If I had to guess it probably isn't going to be long before another company overtakes their position and becomes the "shark" of the industry, especially if this suit has any weight. The negative publicity from this is just a continual indirect detriment to their operations with or without the suit, if the suit is in favor of the plaintiff it would only add to that factor.

    edit: Hell looking at their balance sheet it scares me. I'm really concerned about what other current assets(this is the majority of their assets atm) are as their current ratios are pretty wacky atm(their accounts payable is increasing at a retarded rate with no sign of generating more revenue to pay any of it off. If I was a shareholder I would be REALLY concerned), although I am not familiar with the norm in that sort of industry.

    edit2: felt the need to make a second edit to just you know "throw this out there". Before you tell people they can't comprehend the magnitude of anything you should do your own research about the financial positions. They don't even generate a billion in net income on a yearly basis. If I haven't made it clear, learn your shit before you talk shit.

  14. #14
    I'll change yer fuckin rate you derivative piece of shit
    Join Date
    Sep 2006
    Posts
    55,019
    BG Level
    10

    I signed up when I got the email a few weeks ago, why the fuck not. Anti-competitive business practices should be punished, fuck both Netflix and Walmart, cocksucker corporate douchenozzles.

Similar Threads

  1. Joining a class action lawsuit. How?
    By Meresgi in forum General Discussion
    Replies: 32
    Last Post: 2012-08-30, 16:48
  2. Law and Order: CI
    By Arrmani in forum General Discussion
    Replies: 25
    Last Post: 2008-08-27, 17:40
  3. Law and Order: SVU (Possible Spoiler)
    By Intense in forum General Discussion
    Replies: 4
    Last Post: 2007-11-01, 09:59
  4. Personal beliefs and Laws.
    By Koyangi in forum General Discussion
    Replies: 229
    Last Post: 2007-04-06, 19:58