Tuesday, April 18, 2006

  Judge Halts Netflix Class-Action Settlement

San Francisco Superior Court Judge Thomas Mellon Jr. has halted the settlement reached by Netflix that would have allowed subscribers to upgrade their plan at no cost for a short time period.

According to media reports, the judge is seeking to reduce the amount paid to the plantiff's lawyers as well as change some of Netflix's disclosure requirements. The on-again/off-again settlement should find a home next month.

Meanwhile, consumer advocates continue to carefully watch the proceedings since the use of the word "unlimited" may soon have case law precedent based on Internet companies.

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