Wal-Mart Settles Collusion Class Action Lawsuit over Deal with Netflix

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Last week, Wal-Mart settled a lawsuit with millions of current and former customers of Netflix for illegally colluding with Netflix to stay out of each other’s markets. Wal-Mart agreed to back out of offering DVD rentals by mail, and Netflix agreed to endorse Wal-Mart’s DVD sales. A group of Netflix customers filed suit against Wal-Mart and Netflix over the deal, alleging illegal collusion. Collusion is an agreement to limit competition in a market, which has the effect of guaranteeing larger market shares and keeping prices high in that market. Many, but not all, of these agreements are illegal under U.S. antitrust laws.

Wal-Mart has agreed to settle the lawsuit, but Netflix is continuing to fight. There is a website online for more details of the settlement here: https://onlinedvdclass.com/. Current and former customers of Netflix who paid a subscription between May 19, 2005 and September 2, 2011 can file a claim here: https://onlinedvdclass.com/ClaimForm.aspx.

Addendum...Of Interest this Week.

- Wal-Mart Lawsuit Crosses Competition Lines in Attempt to Avoid Largest Job Discrimination Class Action , on the Fair Employment Legal Update blog.

- Not so Hip! Depuy intentionally Delayed Recall, on Product Liability Legal Update blog

New York Times Editorial Weighs in on the Groundbreaking Wal-Mart Employment Class Action

An editorial run online yesterday at nytimes.com as well as in print in today's New York Times, addresses Wal-Mart's pending petition for Supreme Court review of the 9th Circuit's April ruling affirming class certification of the largest employment class in U.S. history. The class is comprised of over 1 million women who have worked for Wal-Mart,  the nation's largest private employer,  throughout the last decade, and allege they have experienced ongoing gender discrimination in relation to equal pay and promotions.

The editorial notes that seeking Supreme Court review is likely a savvy legal move by Wal-Mart given the Supreme Court's tendency to show favor to large corporations, while also opining that a full hearing of Wal-Mart's allegedly discriminatory employment practices is in order. Thus far, the battle between the behemoth corporation and the class has  been strictly limited to whether class treatment is appropriate, and sadly it remains to be seen whether the underlying merits of the plaintiffs' claims will ever be heard on a class-wide basis.