Netflix, Hulu Face Lawsuits in 5 States For Unpaid Utility Fees

Litigation against Netflix, Hulu, and Disney for unpaid local utility franchise fees is expanding, with dozens of municipalities pursuing revenue lost as consumers cut the cord on cable services in favor of streaming entertainment products.

Class actions have been filed by cities and counties in Indiana, Missouri, Nevada, Ohio, and Texas, alleging the e-commerce companies have failed to pay franchise fees for their use of existing public infrastructure. Other states could be added to the list, said Stephen Kranz, a tax partner in the Washington offices of McDermott Will & Emery LLP.

• “This will be an important issue ...