Wal-Mart Stores Inc has agreed to settle a private antitrust lawsuit over its exit from the online DVD market, according to court documents.
The lawsuit, brought by a eight Netflix subscribers, accused Wal-Mart and Netflix Inc of entering into an improper marketing agreement in which Wal-Mart left the online DVD market and Netflix agreed not to sell new DVDs.
The lawsuit, which seeks class action status in federal court in Oakland, California, claims to represent millions of Netflix customers whose prices were kept artificially high by the deal. It also purports to represent customers of Blockbuster Inc, though Blockbuster is not named as a defendant in the lawsuit.
Guido Saveri, a lawyer for the plaintiffs, and Wal-Mart spokesman Greg Rossiter declined to disclose the proposed settlement amount. The settlement letter was filed with the court on August 27.
We've reached a fair and reasonable agreement subject to the court's approval, Rossiter said.
Netflix said in a court filing on Monday that it would continue to fight the case in court.
The case in the Northern District of California is In Re Online DVD Rental Antitrust Litigation, 09-md-2029.
(Reporting by Dan Levine)