Chavez
Chavez v. Netflix, Inc.
Opinion
Opinion
Margulies, J.
Frank Chavez sued Netflix, Inc. (Netflix), over its practice of advertising that it would send customers “ ‘unlimited’ ” DVD rentals with “1 Day Delivery” for a flat monthly fee. Alleging that both selling points were false, Chavez sought injunctive relief and damages on behalf of himself and a class of current and former Netflix subscribers. Before the class was certified, Netflix agreed to settle the class action by providing one month of free DVD rental services or upgrades to class members who claimed the benefit. The trial court approved the settlement and awarded attorney fees of $2,040,000 to be paid by Netflix to class counsel.
The appellants in these consolidated appeals objected to the class action settlement and fee award in the trial court. They contend that the trial court abused its discretion in approving the settlement, affording notice to class members, and determining the amount of fees. Finding no abuse of discretion, we affirm the orders in issue.
I. BACKGROUND
A. The Lawsuit
Netflix offers its members an online movie rental service in which for a set monthly fee, the members can order movies on digital video discs (DVD’s) via the Internet. Netflix…