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Netflix settles lawsuit for $9 million

Written by Andre Yoskowitz (Google+) @ 12 Feb 2012 21:36 User comments (10)

Netflix settles lawsuit for $9 million Netflix was forced to restate its previous quarter's earnings this week, following its settlement of a lawsuit.
The lawsuit, which alleged Netflix violated consumer-privacy laws, was settled for $9 million, forcing the company to restate its earnings by 14 percent.

In January, the company announced strong earnings and a surprising gain of 600,000 subscribers, its first significant gain in months. Following its PR disaster year of 2011, where its stock fell from over $300 to $60 per share, the company's stock has rebounded and now sits at over $120.

Netflix is expected to report a loss for 2012, thanks to its massive expansion plans into the UK, Ireland, Latin America, the Caribbean and its investment into original programming.

The lawsuit had alleged that since Netflix retains the records of what DVDs customers rent or stream for up to two years after they cancel, they are breaking the Video Privacy Protection Act, which was put into action in 1987. The Act specifically states that all "personally identifiable information must be destroyed within a year from the date that the information is no longer necessary for the purpose for which it was collected."

Netflix keeps the data in case a customer comes back after cancelling their subscription.

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10 user comments

112.2.2012 22:01

Well I bet they won't make that mistake again.

212.2.2012 22:47

this all seems fairly petty...

and who got this money?

If Netflix violated a law, by misusing my information, why is it that a 3rd party should get $9 million dollars for that?

This message has been edited since its posting. Latest edit was made on 12 Feb 2012 @ 22:50

313.2.2012 9:45

Originally posted by keola37:
this all seems fairly petty...

and who got this money?

If Netflix violated a law, by misusing my information, why is it that a 3rd party should get $9 million dollars for that?
Because the justice system works only for lawyers. Netflix probably didn't even realize they did anything wrong until this was brought to their attention (a 1987 law?). Maybe not. I dunno, but yeah, it's petty :(

413.2.2012 14:25
Striker911
Unverified new user

I was a netflix customer and I got something in the mail asking if I wanted to be part of the suit. If I did that I would get some of the money. How much I would get depended on how many people signed up. Lawyers get a share just like any lawyer would in any case. Maybe you should have went to law school. Maybe I should have too.

We also got a check from a lawsuit from a bank for overdraft fees they charge by switching amounts around to make more things acquire insufficient fees. That check was only $31 though and I did not need to sign up for that one.

513.2.2012 18:08

Originally posted by keola37:
this all seems fairly petty...

and who got this money?

If Netflix violated a law, by misusing my information, why is it that a 3rd party should get $9 million dollars for that?
That is what blood sucking lawyers do. They are the blood suckers in the media industry as well.

614.2.2012 7:58

Originally posted by Striker911:
I was a netflix customer and I got something in the mail asking if I wanted to be part of the suit. If I did that I would get some of the money. How much I would get depended on how many people signed up. Lawyers get a share just like any lawyer would in any case. Maybe you should have went to law school. Maybe I should have too.

We also got a check from a lawsuit from a bank for overdraft fees they charge by switching amounts around to make more things acquire insufficient fees. That check was only $31 though and I did not need to sign up for that one.
Yeah, I got a notice like that too...after the lawyers take their 8.9 million cut and they distribute the rest among the millions of people affected, we'll be lucky if we get $.10...lol!

714.2.2012 8:38

Originally posted by sternrulez:
Originally posted by Striker911:
I was a netflix customer and I got something in the mail asking if I wanted to be part of the suit. If I did that I would get some of the money. How much I would get depended on how many people signed up. Lawyers get a share just like any lawyer would in any case. Maybe you should have went to law school. Maybe I should have too.

We also got a check from a lawsuit from a bank for overdraft fees they charge by switching amounts around to make more things acquire insufficient fees. That check was only $31 though and I did not need to sign up for that one.
Yeah, I got a notice like that too...after the lawyers take their 8.9 million cut and they distribute the rest among the millions of people affected, we'll be lucky if we get $.10...lol!
Me too.

You had to return the notice for your $0.10(hahaha) or Netflix credit. Screw Netflix, I will take the dime or whatever the amount is.

Jeff

817.2.2012 12:15

Originally posted by Jeffrey_P:
Originally posted by sternrulez:
Originally posted by Striker911:
I was a netflix customer and I got something in the mail asking if I wanted to be part of the suit. If I did that I would get some of the money. How much I would get depended on how many people signed up. Lawyers get a share just like any lawyer would in any case. Maybe you should have went to law school. Maybe I should have too.

We also got a check from a lawsuit from a bank for overdraft fees they charge by switching amounts around to make more things acquire insufficient fees. That check was only $31 though and I did not need to sign up for that one.
Yeah, I got a notice like that too...after the lawyers take their 8.9 million cut and they distribute the rest among the millions of people affected, we'll be lucky if we get $.10...lol!
Me too.

You had to return the notice for your $0.10(hahaha) or Netflix credit. Screw Netflix, I will take the dime or whatever the amount is.

Jeff
I recieved a notice as well, but i belive it was for a different lawsuit. One between Netflix and Walmart about monopolizing the purchase and streaming deals.
This message has been edited since its posting. Latest edit was made on 17 Feb 2012 @ 12:15

You either die a hero or live long enough to see yourself become a villian...

924.2.2012 17:45
tmharris72
Unverified new user

I do got a letter in the mail asking if I wanted to be in the lawsuit, so I sent it in. So the settlement already happened when would we know if we get any of it? Be nice if people got around $500 to a grand. But, that's wishful thinking I'm sure..lol

1026.2.2012 9:27

Originally posted by tmharris72:
I do got a letter in the mail asking if I wanted to be in the lawsuit, so I sent it in. So the settlement already happened when would we know if we get any of it? Be nice if people got around $500 to a grand. But, that's wishful thinking I'm sure..lol
Actually, you're correct...you WILL be getting $1000 back, but it will be delivered by the Easter Bunny...lmao!

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