Blockbuster Wins Suit Over Late Fees

Blockbuster Inc. said a California judge ruled in the video chain’s favor in a lawsuit over late fees.

An Alameda County Superior Court judge found that Blockbuster’s late fees were not a penalty and it’s up to consumers whether to keep rented videos beyond the initial rental period, Dallas-based Blockbuster said.

The ruling by Judge Ronald M. Sabraw came in a lawsuit filed by Sharon Pickens, who objected to Blockbuster’s late-fee policy.

Blockbuster has been hit by many class-action lawsuits accusing it of making unfair profit with late fees, which accounted for 16% of the company’s revenue in 2000.

Blockbuster shares rose 43 cents to close at $15.80 on the NYSE.