Chavez v. Netflix

We objected to a proposed class action settlement in a lawsuit alleging that the online DVD rental company Netflix engaged in false advertising and deceptive practices concerning the speed of delivery of its DVDs to customers. The original settlement contained an “automatic renewal” provision that would have increased Netflix’s revenues and harmed class members by deceptively steering class members into higher priced memberships, while giving class counsel more than $2.5 million in attorneys’ fees. After we filed objections, the parties changed the settlement to eliminate the “automatic renewal” provision, eliminate the risk that class members would lose more money than they would gain, and further bolster the class relief and class notice. Co-counsel were then-Public Justice Attorney Richard Frankel and Mark Chavez (no relation to the named plaintiff) of Mill Valley, California.