NZXT pays $3.45 million settlement on Flex PC lease

NZXT and its business partner Fragile have agreed to pay $3.45 million to settle a class action lawsuit that accused the two companies of trying to “defraud” consumers with their Flex PC rental service. the Initial settlement It was filed in a California district court on April 7 to close a civil RICO case against Flex Software over allegations that it defrauded 19,322 customers through deceptive marketing practices and aggressive debt collection.

The Flex Program is a rolling rental subscription that NZXT describes as a “flexible alternative to purchasing or financing” a gaming PC, with prices starting at $69 per month. Under the settlement agreement, NZXT agreed to disclose that Flex is not a “rent-to-own program” – something that was allegedly implied through influential promotions for the service. Relief and debt relief payments are expected to be rolled out after final judicial approval next September. If there are no further developments, the case will not proceed to a jury trial.

The settlement itself includes up to $5,000 in debt relief for Flex customers currently being pursued by debt collectors, which is expected to be automatically distributed to affected users who are more than 90 days behind on their payments. Flex customers who have paid into the program for two or more years will now be given full ownership of their PCs, allocating $1.2 million.

Customers who return their computers and owe no debt are also eligible for a cash payment, the total of which depends on “the number of valid claims submitted,” according to the court filing. Flex customers who signed up for the service between October 19, 2023 and March 30, 2026 are eligible to apply for settlement payouts, and the claims portal is expected to open around April 28.