NEW YORK (
won its class-action suit, with a judge dismissing claims that it conspired with
to monopolize the DVD market.
The class-action suit came about in response to a dinner meeting in 2005, at which the CEOs of Netflix and Wal-Mart allegedly agreed to share the DVD market. According to consumer advocates, Wal-Mart under the pact agreed not to rent DVDs if Netflix promised not to sell them. Class-action suits were filed against both companies in 2009, claiming that the agreement violated antitrust laws.
A trial in the case was scheduled to take place in January, but will not move forward.
"We're obviously pleased with the court's decision here as we've always said this case had no merit," said Steve Swasey, a spokesman for Netflix.
U.S. District Judge Phyllis Hamilton said last week that the court could not prove that Netflix worked in cahoots with Wal-Mart by agreeing to not sell DVDs.
Wal-Mart previously reached a settlement with plaintiffs, agreeing to pay $27.25 million to Netflix customers who subscribed to the service May 19, 2005, and Sept. 2, 2011.
Reported by Jeanine Poggi in New York.
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