Wal-Mart, Netflix sued by customers

NBC NEWS — Wal-Mart will pay out $27.25 million to settle a class action law suit stemming from a DVD-by-mail distributing program gone bad.

The company partnered with Netflix in 2005 to help boost its own DVD-by-mail service while helping Netflix boost its subscribers.

Netflix users have sued both companies, saying the deal hurts movie fans; furthermore, a California court said that the deal violated anti-trust laws, so both companies had to pay up.

Wal-Mart plans to pay out their portion in cash and gift cards, which is making some say the company is just pushing a new marketing scheme.

Netflix has not yet agreed to settle.