Consumers who purchased a video or videogame from DirectToU, or who signed up to receive related notices, may be eligible for a cash payment estimated between $60 and $145 from a class action settlement.
Overview
DirectToU LLC and Alliance Entertainment LLC agreed to pay $1.58 million to resolve claims that they shared customers’ personally identifiable information with third parties without consent. The lawsuit alleged violations of the Video Privacy Protection Act (VPPA) and California privacy laws.
Who Is Eligible?
Two groups are included in the settlement:
Nationwide Class
U.S. residents who bought a video or videogame from DirectToU or signed up to receive related notices, and whose information showing they requested or obtained specific video materials may have been disclosed to a third party between August 8, 2022, and September 22, 2025.
California Subclass
California residents who bought a video or videogame from DirectToU or signed up to receive related notices, and whose information may have been disclosed between August 8, 2020, and September 22, 2025.
Settlement Payment Amount
Class members may receive a pro rata cash payment, currently estimated between $60 and $145. The final amount will depend on the number of valid claims submitted.
How to File a Claim
A claim form must be submitted by January 20, 2026. Claims may be filed online or by mailing a printed form to the settlement administrator.
Mailing address:
DirectToU Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Required Information
- Notice ID and Confirmation Code from the official settlement notice are required for online claims.
Payment Options
Class members may choose one of the following:
- Paper check
- Prepaid Mastercard
- Venmo
- Zelle
- PayPal
How the $1.58 Million Settlement Fund Will Be Used
The $1,577,000 fund will cover:
- Settlement administration costs: up to $125,000
- Attorneys’ fees: up to $394,250
- Attorneys’ costs: $20,000
- Service awards to class representatives: up to $5,000 each, total of $15,000
- Payments to class members with valid claims: remaining funds
Important Dates
- Claim deadline: January 20, 2026
- Exclusion deadline: January 20, 2026
- Fairness hearing: January 28, 2026
When Will Payments Be Sent?
Payments are expected to be distributed approximately 75 days after the court grants final approval and the settlement becomes effective.
Why the Settlement Was Filed
The lawsuit claimed that DirectToU and Alliance Entertainment shared customers’ video-related information with third parties without permission. Both companies denied wrongdoing but agreed to settle to avoid the risks and costs of litigation. In addition to monetary relief, the settlement requires changes to the defendants’ data-sharing practices, including modifying Facebook Pixel settings and limiting the sharing of customer transaction data unless permitted by law.
Settlement Details
- Estimated award: $60 to $145
- Claim deadline: January 20, 2026
