Why do "opt-out" settlements even exist?

by **ruddy** » Tue Jul 31, 2012 4:20 am

I received an email for the recent NetFlix class action law suit. I'm a little curious as to why I would be automatically opted in to a settlement and required to spend my own time and postage writing a letter to opt-out. If my rights are affected, it seems to me that the legal system should NOT be allowed to "automatically" opt me in without my consent. Failure to respond to an email (not even a postal letter!), aka: "Do nothing", does not seem like a valid form of consent to me. What if I don't see the email, it goes to junk mail, etc. It's got me a little upset at the legal system and I'm wondering why this is allowed. The only people that make money on such class-action lawsuits are a few named plaintiffs and a bunch of lawyers. I don't appreciate my name being used to make other people money.

by **salvadore94** » Tue Jul 31, 2012 4:24 am

This kind of opt-in benefits industry by ensuring that they can resolve all the potential claims resulting from one incident. Netflix wanes you opted in once the suit is certified for class action, which means it's a potentially valid claim. The rules are written to protect Netflix (or any class action defendant) by ensuring that thousands of other lawsuits can't be filed after this class action, unless each person opts out.

by **ludano17** » Tue Jul 31, 2012 4:29 am

Because most people opt in. Otherwise they have to do their own lawsuit, which is very expensive. Even if the facts of the case are resolved, the damages aren't and that costs money. This is the nature of a class action suit. The facts are the same for everyone and damages are usually very similar or readily determinable. Unless you have damages very much outside the norm, there is no reason to opt out. Opt out is generally for people who want to file your lawsuit. Opt in is for your benefit, so you don't have to file your own suit and prove the case yourself and spend a bunch of money to do so. It is NOT to help the coporation. They fight it as much as they can.

Besides, you act like writing a letter and using a stamp is a major hardship. It isn't.

Um, dear, if you got the email, you are a named plaintiff. You get the same benefit as the others. You just didn't have to go through the hassle they did. You should be thankful that they did all the work so you don't have to.

The lawyers take a big risk. They spend a lot of time and money on putting a case together with the risk they will get nothing.

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