Update: Frank Chavez, the person named in the lawsuit, is getting $2,000, and the lawyers are taking in about $2.5 million for "...fees and costs" (I should have gone to law school). You can read the proposed settlement notice here.
If you were a paying Netflix subscriber before January 15th you may be eligible for a free, one-month upgrade in service (an additional DVD out at a time), pending approval from the court.
The lawsuit claims that Netflix made false statements in their marketing and advertising materials:
A class action lawsuit entitled Chavez v. Netflix, Inc. was filed in San Francisco Superior Court (case number CGC-04-434884) on September 23, 2004. The lawsuit alleges that Netflix failed to provide "unlimited" DVD rentals and "one day delivery" as promised in its marketing materials.
Netflix has stated that they "...admit no liability or wrong-doing."
They have setup a special Web site for this settlement: www.NetflixSettlement.com. There is also a link ("Settlement") on the bottom of the Netflix site to this page.
You have four options:
Sign up and join the settlement class by February 17th, 2006 at www.NetflixSettlement.com. Do Nothing. Exclude yourself from the class by mailing a letter, as per the directions in the settlement offer. Make an objection to the settlement in court. You must file papers by January 5th, 2006.
Thanks to Richard and Tom for sending this in.